Goldman Sachs maintains Apple stock Buy rating, $253 target

On Wednesday, Goldman Sachs reiterated its Buy rating and $253.00 price target for Apple stock (NASDAQ:AAPL), emphasizing the tech giant’s advancements in artificial intelligence (AI) integration. The investment bank’s analysis anticipates that Apple’s Worldwide Developer’s Conference (WWDC), scheduled for June 9 to June 13, 2025, will showcase significant iOS updates and AI enhancements. According to InvestingPro data, potential AI partner Alphabet (NASDAQ:GOOGL) commands a substantial market cap of $2.06 trillion and maintains strong financial health with a GREAT overall score.

Goldman Sachs predicts that the WWDC 2025 keynote will reveal Apple’s continued efforts to weave AI into its ecosystem, highlighting developer access to AI models for app creation. This move builds on the previous year’s introduction of Writing Tools, Image Playground, and Genmoji. Additionally, the potential unveiling of Gemini AI on iPhones is expected, following Alphabet CEO Sundar Pichai’s remarks about a potential partnership with Apple by mid-2025. Alphabet’s strong position is reflected in its impressive 13% revenue growth and robust P/E ratio of 18.85, suggesting solid fundamentals for this strategic partnership.

The firm suggests that for investors to fully embrace Apple Intelligence as a key growth driver, Apple must demonstrate further advancements. These include AI-powered features such as an enhanced Siri, on-screen awareness, and personal context slated for release in late 2025 or 2026.

The conference is also set to feature design updates to unify the visual interface across Apple devices, with rounded app icons and translucent displays. Other anticipated announcements include the introduction of user convenience features like public WiFi access syncing, AI-driven battery optimization, and Gemini integration.

Goldman Sachs acknowledges concerns over the delayed rollout of Apple Intelligence but remains optimistic. The firm cites incremental improvements in user experience through iOS 19, the expected launch of AI-enhanced Siri, and the opening of Apple’s large language models (LLMs) to app developers as factors that will likely sustain customer loyalty and bolster Apple’s position against competitors in the consumer AI space. For deeper insights into tech sector developments and AI partnerships, InvestingPro subscribers can access comprehensive Pro Research Reports covering 1,400+ top stocks, including detailed analysis of both Apple and Alphabet’s AI initiatives and financial performance metrics.

In other recent news, Alphabet Inc. showcased significant advancements in artificial intelligence (AI) at its annual Google I/O conference. The company introduced AI Mode in Google Search, which is now available to all U.S. users, marking a major step in enhancing its search capabilities. Analysts from Stifel, Citi, JPMorgan, and KeyBanc have maintained their positive ratings on Alphabet, with price targets ranging from $175 to $200, reflecting confidence in the company’s strategic moves in AI. Citi highlighted the growing user engagement with Alphabet’s Gemini App, which has reached 400 million monthly active users, and the introduction of AI Overviews contributing to increased search queries. Wells Fargo (NYSE:WFC) emphasized the importance of deeper AI integration into core search functions and the potential competitive edge from leveraging personalized data. KeyBanc praised Alphabet’s infrastructure and distribution strengths, noting the potential for new monetization opportunities through its AI offerings. JPMorgan and KeyBanc both reiterated their Overweight ratings, citing Alphabet’s rapid product innovation and strategic positioning in AI as key growth drivers. These developments underscore Alphabet’s commitment to innovation and its efforts to lead in the evolving landscape of AI-powered technologies.

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