Warren Buffett is known for building Berkshire Hathaway into a massive company and for his charity work. He is not usually known as a tech investor. Most of his famous investments have been in financial services and consumer goods.
But Buffett has supported Apple for almost 10 years. Apple is now Berkshire’s biggest investment, making up about 30% of its portfolio. Apple stock has gone up a lot since Berkshire first bought it in 2016.
Some Wall Street analysts think the stock could go even higher. Dan Ives of Wedbush Securities thinks Apple stock could reach $300, which would be a 32% increase. In the last few years, high inflation and rising interest rates have affected the U.S. economy.
As a global company, Apple has also been impacted by slowdowns in other regions like China. People have had to spend less, so they have put off buying expensive new iPhones or MacBooks. But as inflation slows down and the Federal Reserve stops raising interest rates, people should be able to spend more.
Several big tech companies have invested a lot in artificial intelligence (AI) recently. Apple has not been one of them until now. Dan Ives said on CNBC that Apple is about to have a “renaissance.” Apple’s new iPhone 16 just came out.
Buffett boosts Apple AI ventures
With the economy improving, Apple could see a boost in demand for its new products. Apple is also working with OpenAI now.
This has led to the creation of Apple Intelligence. As Apple starts to offer new AI services, people may want to upgrade to Apple’s new products. Ives thinks Apple will partner with more AI companies in the future.
He believes this will be important for Apple’s growth. These factors could help Apple a lot. Ives says Apple is entering a “new era.” Getting into AI could be a big growth opportunity for the company.
One downside of Apple stock is that it is expensive right now. Apple’s valuation is much higher than the average for the S&P 500. Investors should know that Apple stock has gotten pricier even though it was late to get into AI.
Some of the expected AI-driven growth may already be included in Apple’s stock price. It is still hard to say for sure how much the new iPhone and Apple Intelligence will help Apple grow. But Apple’s ability to grow thanks to a strong consumer market should not be underestimated.
In the long run, Apple remains an attractive opportunity. Its shares are worth considering right now.
