Bank of America raises price target for Apple to $320 Apfelpatient

Apple is receiving renewed support from Wall Street. Bank of America has raised its price target for Apple stock to $320, up from $270. In their latest report from October 29, the bank's analysts cite advancements in artificial intelligence (AI) and smart home technologies as the primary drivers of their optimistic outlook. They maintain their strong buy recommendation, coupled with high confidence in Apple's long-term strategy.

Apple is in a phase of significant product strategy expansion. While the market often focuses on new iPhones or Macs, Bank of America sees growth potential in entirely different areas. AI, robotics, and connected smart home systems are expected to play a central role by the end of the decade. Analysts believe Apple is poised to open a new chapter in its corporate history with these technologies – similar to the transition to Apple Silicon a few years ago.

Apple's strategic advantages

In its analysis, Bank of America particularly highlights Apple's ecosystem, its strong brand, and its enormous installed base. These three factors are considered the core of its stability and the foundation for sustained profit growth. They secure competitive advantages for Apple that hardly any other technology company possesses in this form.

Analysts expect Apple's five-year forecast through 2030 to be characterized by steady growth, driven by the integration of AI into products and services. The study examines both revenues and operating margins across all business units.

AI as the next growth engine

Artificial intelligence is the central focus of the new outlook. According to Bank of America, it will be the crucial catalyst for Apple's next phase of growth. AI is expected to play a role in virtually every product and service in the future. This includes AI-powered glasses, robotic devices, and intelligent smart home systems.

A particular focus is on so-called "edge AI," meaning artificial intelligence that runs directly on the devices instead of being processed via the cloud. This local data processing is considered strategically important because it improves performance and further strengthens Apple's reputation in terms of data privacy.

Analysts emphasize that Apple's investments in machine learning, chip design, and vertical integration should improve margins in the long term. At the same time, they warn that the increasing importance of AI could put existing revenue streams, such as search partnerships or App Store recommendations, under pressure.

Five-year model until 2030

Bank of America's forecast is based on a detailed model that projects Apple's segment profits through 2030. It estimates market growth and market share in each product category. Based on this data, the expected revenue, operating margin, and earnings per share are calculated starting in 2025.

After modeling operating profits and earnings per share through 2030, the present value of these results for 2026 was determined – using Apple's weighted average cost of capital.

The resulting calculation leads to an earnings estimate that also takes into account future revenue streams that are currently under development. The higher price target of $320 results from the combination of higher expected operating profit over five years and a higher valuation multiple, which is attributed to AI growth.

Products and services in focus

Bank of America divides Apple's outlook into two main areas: products and services. Regarding products, analysts expect further growth through upgrades and new hardware, including AI-enhanced iPhones, MacBook Pro models, and accessories with on-device learning capabilities.

However, the services business is expected to grow even more strongly. According to the report, revenues from offerings such as Apple One, iCloud+, App Store commissions, and new subscription tiers powered by Apple Intelligence will increase significantly in the coming years.

For fiscal year 2025, Bank of America forecasts service revenues exceeding $100 billion – an increase of approximately 13 percent compared to the previous year. This development underscores how stable Apple's subscription model has become. Even though the App Store continues to face regulatory pressure, it remains the most important growth driver.

Market context and timing of the forecast

Bank of America's new assessment comes just before the release of Apple's fourth-quarter earnings report. Investors are eagerly awaiting information on the introduction of AI features and product demand during the holiday season. The timing of the forecast suggests that analysts expect Apple to be able to reach new record highs in its share price.

Compared to the previous switch to Apple Silicon, analysts see a similarly profound change in the AI strategy. Here, too, the focus is on the integration of hardware and software, which improves performance, control, and efficiency.

The new assessment, with a price target of $320, is among the most optimistic on Wall Street. It assumes that AI could structurally change Apple's business model and redefine its earnings profile through 2026 and beyond.

Apple's stock reacted immediately to the upgrade: After the analysis was published, the price rose to around $270 and continued to climb. Market optimism is based on the expectation that Apple Intelligence will evolve from a software feature into a key growth driver.

More than hardware: Apple's path into the next era

Bank of America's analysis shows that Apple is far more than just an iPhone manufacturer. The company is strategically positioning itself for a future in which artificial intelligence, robotics, and smart home technologies will drive growth.

The decision to raise the price target to $320 is based on a comprehensive assessment of Apple's strengths – from its closed ecosystem and data privacy to its technological independence. If the analysts' predictions prove accurate, Apple could once again set standards by 2030 and play a key role in shaping the AI revolution. The best products for you: Our Amazon storefront offers a wide selection of accessories, including those for HomeKit. (Image: Shutterstock / divdevelopment)

Disclaimer: No recommendation for investments

This article does not constitute financial or investment advice. The information contained herein is for journalistic and informational purposes only. Please conduct your own research or consult a financial advisor before making any investment decisions.