AFP, July 12 (Editor Wong Kwan Chi) Apple (Apple)'s next-generation iPhone is stirring up new bullish sentiment on Wall Street.

Bank of America (Bank of America) is the latest bank to raise its target price for this share, which is expected to be $256 per share. This price target means that Apple stock can still rise about 12.5% from current levels.

The bank emphasized that the next iPhone upgrade is the key to boosting Apple's stock price. Bank of America believes that consumers' excitement about generative artificial intelligence and the obsolescence of current equipment will drive an upgrade cycle over several years.

Bank of America on Thursday, citing a survey it conducted, wrote: “After the Global Developers Conference, there was an increase in the percentage of respondents who answered that they intend to upgrade their smartphones in 2024, and we think this is an optimistic trend. In our opinion, the findings of this survey show that users are more confident in buying the iPhone 16, which is probably driven by the introduction of Apple intelligence.”

Wall Street continues to be bullish

Other analysts are also optimistic about the upcoming iPhone 16, which will be released in September. This phone will be Apple's first device that takes artificial intelligence into account. Apple showcased its “Apple Intelligence” (Apple Intelligence) product at the Global Developers Conference held last month. The product upgraded Siri to an intelligent digital assistant that is more conversational than the current version.

Wall Street investment bank Wedbush Securities (Wedbush Securities) analyst Dan Ives (Dan Ives) estimated in a report on Thursday that shipments of new phones will be close to 90 million units, exceeding Wall Street's expectations. The bank's target price for the share was set at $275.

However, it should be noted that the functionality of the iPhone 16 is not the only catalyst; “demand for new models is being suppressed” is also one of the reasons. Wedbush said an estimated 0.27 billion iPhone users haven't upgraded their devices in four years.

Bank of America also agreed with this view. In its survey, the bank found that a large percentage of users are still using older models, and there is an increase in consumers willing to upgrade their phones more frequently. Consumers prefer Apple over other smartphone brands.

At the same time, as Chinese consumer demand for Apple products is also increasing, the threat of a decline in Chinese consumers' enthusiasm for buying, which worried investors a year ago, is weakening.

At the end of last month, CFRA and Bernstein (Bernstein) also raised Apple's target share price to $240 per share. CFRA analyst Angelo Zino's previous price target was $210. He said that Apple is preparing to turn the iPhone into the “ultimate personal assistant.”

Bernstein (Bernstein) analyst Toni Sacconaghi believes that Apple's WWDC keynote made the company a leader in artificial intelligence, and that it has the ability to bring AI to the public through its installation base of more than 1 billion iPhone users.

“Apple can bring artificial intelligence to the masses and increase everyday uses. Apple is reportedly not paying ChatGPT, which highlights its influence.” he added.