Apple’s stock has shown a notable resurgence, returning to positive territory for the year following analyst upgrades that indicate stronger-than-expected consumer interest in its latest iPhone release. This renewed market confidence, particularly from influential firms like Wedbush, suggests that prevailing market skepticism regarding the iPhone 17 cycle may be overstated.
Wedbush analysts recently raised their price target for Apple shares, citing early indicators of robust demand for the iPhone 17. This adjustment follows an initial launch that fostered concerns among some observers, who worried that consumers might delay upgrades awaiting more significant design overhauls or the integration of advanced artificial intelligence features. The firm’s assessment suggests that the broader market is currently underestimating the momentum of this particular iPhone upgrade cycle.
Surprising Demand for iPhone 17
The iPhone 17 has begun to capture positive attention on Wall Street, defying initial lukewarm expectations with surprising signs of strong consumer adoption. Apple’s stock saw a significant increase, trading up over 3% to approximately $254 on Monday. This uplift was partly driven by Wedbush analysts, led by the long-standing Apple advocate Dan Ives, who revised their price target to a new street-high of $310 from $270. Their analysis points to a better-than-expected demand trajectory.
Prior to the iPhone 17 cycle, Wedbush had anticipated an upgrade cycle that would be “good, but not great.” This cautious outlook was influenced by prevailing sentiment that consumers might defer purchases in anticipation of more substantial design changes and delayed AI functionalities, potentially dampening demand. However, the firm reported being “positively surprised,” with internal checks indicating that the iPhone 17 is currently performing “10%-15% ahead of iPhone 16 so far.” This suggests that muted market expectations might be inadvertently fueling enthusiasm for the stock as positive performance data emerges.
The Unaddressed AI Strategy
Despite the positive reception of the iPhone 17, a significant contingent of investors remains focused on Apple’s artificial intelligence strategy, which Wedbush identifies as the critical “elephant in the room.” The firm suggests that Apple should proactively accelerate its AI development through strategic external partnerships. The anticipation is that a clearer articulation of Apple’s AI roadmap could provide a substantial catalyst for further stock appreciation.
In line with this sentiment, Bank of America analysts reiterated a “buy” rating and a $270 price target for Apple’s stock. They expressed confidence in Apple’s potential to emerge as a leader in the AI space, notwithstanding concerns that the company may have trailed some of its prominent Big Tech competitors in this arena. The recent positive movement in Apple’s share price, coupled with indications of strong iPhone 17 demand, has successfully returned the stock to positive year-to-date performance.
David Thompson earned his MBA from the Wharton School and spent five years managing multi-million-dollar portfolios at a leading asset management firm. He now applies that hands-on investment expertise to his writing, offering practical strategies on portfolio diversification, risk management, and long-term wealth building.