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Apple's (GS) shares soared to an all-time high on Monday, rising 2.5% to $236.30, after Morgan Stanley (MS) raised its price target and designated the stock as a "top pick" due to the company's advancements in artificial intelligence. The iPhone maker's latest AI initiative, Apple Intelligence, unveiled last month, is expected to drive a significant uptick in device sales, allowing the company to catch up with competitors like Google's Alphabet and Microsoft-backed OpenAI. Apple's market value reached a staggering $3.62 trillion, the highest in the world.

Morgan Stanley analysts highlighted that Apple Intelligence is a clear catalyst to boost iPhone and iPad shipments. They noted that the new technology is currently compatible with only 8% of existing iPhone and iPad devices, with Apple having 1.3 billion smartphones in use. The analysts projected that Apple could sell nearly 500 million iPhones over the next two years, raising their price target on the company's shares from $216 to $273. The stock has already jumped nearly 20% this year, outperforming the S&P 500 index.

Market Overview:

• Apple shares rose 2.5% to a record high.


• Market value reached $3.62 trillion.


• Morgan Stanley raised price target to $273.

Key Points:

• Apple Intelligence drives device sales.


• 500 million iPhones projected to sell over two years.


• Stock outperformed the S&P 500 index.

Looking Ahead:

• AI-enabled smartphones to boost market recovery.


• Apple and Samsung expected to lead recovery.


• Apple's strong performance garners widespread acclaim.

The broader smartphone market is also expected to benefit from the AI boom, with industry analysts predicting that Apple and Samsung will lead the recovery. Apple's global smartphone sales reached 45.2 million in the three months ending June, up from 44.5 million a year earlier, although its market share slipped to 15.8% from 16.6% in the same period, according to IDC data. The enthusiasm surrounding AI-enabled smartphones is seen as a major factor driving this trend.

Apple's performance has garnered widespread acclaim, with the stock maintaining an average rating of "buy" and a median price target of $217, according to LSEG data. As the company continues to innovate and expand its AI capabilities, investors and analysts alike are optimistic about its future growth prospects. Morgan Stanley's bullish outlook further cements Apple's position as a leader in the tech industry.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.