A leading technology analyst is sizing up the case for Apple Inc (NASDAQ: AAPL) to become the first public company to hit a market capitalization of $4 trillion in 2024, following its footsteps of being the first to hit $2 trillion and $3 trillion.
The Apple Analyst: Wedbush analyst Daniel Ives has an Outperform rating and price target of $250 on Apple.
The Analyst Takeaways: Ives recently shared his 10 technology sector predictions for the 2024 year, which included Apple introducing its AI app store, the Magnificent 7 stocks including Apple leading the tech sector higher, Apple buying ESPN and Apple hitting a $4 trillion market capitalization.
"We believe Apple will be the first $4 trillion market cap by the end of 2024 given the pace of growth and monetization we estimate for Cupertino over next year," Ives said.
The analyst said concerns over iPhone bans in China had not dented demand for Apple in recent checks. Ives said there had been no negative revisions for iPhone unit demand from Asian supply chain checks.
"We believe Apple is heading into a strong holiday season over the coming weeks that should translate into iPhone 15 growth that exceeds Street estimates for the December quarter on the heels of strong upgrade activity within the U.S. and China markets."
The analyst said the consumer demand for the iPhone 15 is good news for Apple and confidence remains that the company can hit 220 million to 230 million unit sales in fiscal year 2024.
"In our view, the Street continues to underestimate the underlying upgrade opportunity in China during the December quarter and FY24."
Ives estimated there were over 100 million iPhones in China that could be seeking an upgrade.
Average sale prices of the iPhone in the current cycle were another "major tailwind" for Apple according to Ives.
Services revenue growing double-digits year-over-year and iPhone unit sales in fiscal 2024 were the key catalysts for Ives going forward.
"We believe the 'growth demise story' of Apple being spun by bears is a dynamic view we have seen constantly over the past decade and this is just another chapter in that book."
Ives called now the "golden opportunity" to own Apple heading into the new year.
AAPL Price Action: Apple shares are trading at $195.84 versus 52-week trading range of $124.17 to $199.62. Apple shares are up over 57% year-to-date in 2023.