Tech giant Apple (AAPL) could be entering a breakout year, according to five-star Wedbush analyst Dan Ives. Speaking on CNBC, Ives said that artificial intelligence alone could add $75 to $100 per share to Apple’s valuation. This is because he believes that the market has not fully priced in Apple’s growing focus on consumer AI. Interestingly, Ives compared the setup to Alphabet’s (GOOGL) strong performance last year, and suggested that Apple could follow a similar path.
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Separately, Jeff Kilburg, founder, CEO, and CIO of KKM Financial, noted that money has been rotating out of past winners like Nvidia (NVDA) and Meta (META) and into lagging names such as Apple and Alphabet. Kilburg was especially enthusiastic about Alphabet and noted that the company recently crossed $400 billion in annual revenue for the first time. He also pointed out that the firm has made some major efficiency gains.
More specifically, its Gemini platform now processes 10 billion tokens per minute, while serving costs have dropped by 78% over the past year. Moreover, even though software stocks have been plunging, both analysts see opportunity rather than lasting damage. Indeed, Ives called this a “table pounder” moment to buy oversold software stocks such as Salesforce (CRM), CrowdStrike (CRWD), Microsoft (MSFT), Oracle (ORCL), and ServiceNow (NOW).
Which Tech Stock Is the Better Buy?
Overall, out of the tech stocks mentioned above, analysts think that ORCL stock has the most room to run. In fact, ORCL’s price target of $295.18 per share implies 112.4%% upside potential.
