JPMorgan analysts raised their estimate for Apple (NASDAQ:) stock from $225 to $245, attributing the rise to the potential for higher earnings per share (EPS) during the period when new AI features should encourage consumers to buy the latest iPhones.
“Following the WWDC event, we have revised our sales forecast for the iPhone 16 and iPhone 17 models. The event introduced a range of AI capabilities that we believe will usher in a period of increased sales. “upgrades to the iPhone, starting with the release of the iPhone 16 and culminating with the release of the iPhone 17,” analysts said in a report.
As a result, the Wall Street firm also revised upwards its forecasts for the number of iPhones sold, namely 250 million in 2025 and 275 million in 2026. They anticipate stronger annual sales growth for these two years by compared to the previous period, when 5G technology was the main selling point.
These projections take into account conservative estimates on how often phones will be replaced, a two-year time frame to reach peak sales figures, and the possibility of using new artificial intelligence features on iPhone models. 15 Pro/Pro Max already marketed. They also predict significant improvements to iPhone hardware in 2026.
Analysts also raised their growth projections for Apple’s Services division, expecting increased revenue from third-party AI applications in the future.
“Taking all of these factors into account leads us to increase our Apple earnings projections for fiscal years 2025 and 2026 to $8.10 and $9.69 per share, respectively. This figure is above the market consensus , which currently stands at $7.26 and $7.64 per share for the same periods,” the analysts said.
Although investor expectations for Apple stock have already increased after the WWDC event, due to the anticipation of a new wave of upgrades thanks to AI improvements, JPMorgan suggests that There is still room for the stock to increase in value. The stock currently trades at around 22 times the company’s 2026 earnings forecast, but analysts believe a multiple of 25 times would be more appropriate.
“Nevertheless, our revised forecast currently only reflects the expected increase in iPhone sales due to AI improvements. We also recognize the possibility of additional sales growth from upgrades to other Apple products like iPads and Mac computers, as they could also benefit from advances in AI,” the analysts said in their remarks.
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