The demand for artificial intelligence has steadily skyrocketed over the last two years. With OpenAI changing the game, Wall Street has flocked to companies promising advancement in the sector. Yet, Apple (AAPL) may have emerged as the highest upside AI stock amid a recent $325 price target.
Indeed, the iPhone developer may have arisen as a key stock option to counter companies like Nvidia (NVDA) and Microsoft (MSFT). Although not a chipmaker or language model developer, its reach and past success could allow the company to be one of the biggest gainers of the industry’s growth.
Apple Emerging as the Strongest AI Stock Play? Here’s What Experts are Saying
Also Read: US Stocks: Who’s Winning—or Losing—2025 So Far?
There are few companies that have been as successful over the last decade as Apple has been. The iPhone developer entered 2025 looking to be the first company to ever reach a $4 trillion market cap. However, geopolitical headwinds have some experts projecting the stock to crash 20%.
Conversely, some experts think the best is yet to come for the company this year. Indeed, Apple (AAPL) has emerged as a high-upside AI stock for this year with analysts recently giving the company a $325 price target over the next 12 months.
Apple was certainly late to the party as far as AI goes. However, it has debuted its Apple Intelligence AI offerings in a recent upgrade. Although iPhone sales have been stagnating at a 1% year-over-year increase, there is reason to believe an increase is ahead.
Also Read: Apple (AAPL) Stock in Tariff Trouble? Here’s What Bank of America Says
The company has opted to release new features in a rather staggered manner. This means that with each iOS update, there are new AI capabilities. Additionally, AI is only available on just 20% of all iPhone users, noting significant room for growth, according to Forbes.
This combines with the growth of Apple’s services division. The business has generated almost $100 billion in revenue over the past year. Moreover, Q1 of 2025 saw service sales jump 14% year over year to reach $26 billion. That figure marked an all-time high and showed that there is potential for even more AI-powered tools coming to the forefront.
What to Expect From the Stock This Year
Also Read: Apple (AAPL) Q1 2025 Revenue Climbs 3% to $124B Amid iPhone 16 Sales Surge
The question now is, just what do experts predict for the stock this year? Tuesday saw AAPL shares jump more than 2.57% to trade at $233. That performance only reinforced what has been a rather volatile few months for the company.
Over the last five days, Apple stock has jumped more than 2.59%, according to CNN data. However, it is down less than 1% over the last month, with shares having increased more than 7% over the last six months.
The financials for the stock look healthy, with net income reaching $36 billion, a 69% increase from last year. Yet, there are some experts who have expressed concern. Of 51 analysts surveyed, only 59% hold a buy rating on the stock. Alternatively, 10% have called on investors to sell, with 31% urging to hold.
That doesn’t change the inherent potential for Apple. The stock currently holds a $300 high-end projection. Yet, its median price target stands at $250, up 7% from its current position. Alternatively, it has a low-end projection of $184, representing a 21% downside for the company.