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Will Apple’s iPhone 15 launch and AI innovations spark a new bullish trend? – Apple (NASDAQ:AAPL)


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Do Apple (NASDAQ:AAPL) Will the iPhone 15 be enough to return the stock to a rising position?

Will some sort of AI implementation be the key to the stock’s eventual reversal?

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Or will other institutions follow the example of Warren Buffett, who Berkshire Hathaway (NYSE: BRK-B) Is Apple its largest holding by market capitalization, accounting for more than half of the company’s stock position?

Since Berkshire bought Apple in 2016, it’s been on a solid rally, but for investors looking to add to theirs right now, there are a few pitfalls to consider.

The stock has slipped since the July 19 peak

To understand the current outlook for the stock, take a look at the Apple chart. The stock is down 12% since its July 19 peak of $198.23, and fell 4.80% on Aug. 4, after a quarterly earnings report failed to ignite the fire under investors, as revenue fell 1% in the quarter as iPhone sales fell.

This was the third consecutive quarter in which device sales and total revenue declined year-on-year. However, MarketBeat’s Apple earnings data shows that the stock beat revenue and net income.

But the company said it expects some weakness in the current quarter: Although iPhone sales are expected to pick up, the company expects revenue to decline in tablets and Macs.

Apple stock is down 2.10% in the past week and 10.18% in the last month. Year-to-date, it has maintained a gain of 34.46%.

Apple shares have stagnated over the past year

But if you take a long-term look at Apple’s chart and its return, it becomes interesting: On a one-year basis, Apple shares are up just 0.22%. The stock is trading exactly as it was on August 19, 2022. So there was no going back to talk about it in a year.

Apple stock has behaved this way before. For example, the stock began zigzagging sideways in April 2015, then pulled back into a correction that lasted until February 2017. During previous broad market downturns, such as the early 2000s and the large-scale crash from 2007 through 2009, it remained Apple is also awash with corrections.

Obviously, these situations resolved on their own, and Apple has reported a 15-year return of 25.14%.


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But with the iPhone 15 launching in September, does the current dip offer a buying opportunity?

Analysts have a “moderate buy” consensus.

On the one hand, the company says it doesn’t expect a strong quarter. On the other hand, MarketBeat’s Apple analyst ratings show a consensus view of “Moderate Buy”, with a price target of $198.86, an increase of 14.02%. This price would take the stock to a new high, removing the previous peak it hit on July 19th.

However, analysts have conflicting expectations when it comes to iPhone 15 sales, and about the company’s prospects in the coming months. After the fiscal third quarter report, four analysts boosted their price targets for the stock, while three lowered their targets.

Analyst ratings generally take into account expected price movement over the next 12 to 18 months.

Analysts and investors are looking forward to what will happen in the near future, which is the iPhone 15.

Apple’s machine learning capabilities

But much of this year’s technological rise has been due to something Apple isn’t particularly known for, which is artificial intelligence.

According to reports, in a presentation given in June at the Worldwide Developers Conference, Apple mentioned the term “machine learning” without specifically mentioning artificial intelligence, although the terms are essentially interchangeable.

Apple’s iPhone, Mac, and iPad products are built using the Neural Engine, a chip designed for machine learning applications.

AI chatbot development

Apple is not known for its generative AI initiatives, but the company is reportedly developing an AI chatbot that is being tested internally, but the company has no plans to launch it anytime soon.

As all investors know by now, Apple is not a company that sits on its laurels and denies technological changes. Although it does not actively promote AI capabilities, it makes sense that it is integrating machine learning into its products, in addition to developing a chatbot.

All of this means that the current pullback could be a buying opportunity, although the most cautious investors may want to wait for the stock to rally before diving in, which could act as further assurance that the rally has some legs.


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