Bank of America kept its Buy rating on Apple and lifted its price target to $320. The bank cites strong iPhone 17 sales and growing confidence in Apple’s AI roadmap. At today’s price near $268, that target implies roughly 19 percent upside.
Analyst Wamsi Mohan points to healthy demand for the iPhone 17 Pro and Pro Max. He also expects Apple to guide revenue growth in the high single digits for the current quarter. CNBC reported the call ahead of Apple’s fiscal fourth-quarter earnings on Thursday, noting the firmer view on units and the higher target embedded in the new note.
Apple’s stock has rebounded since April’s slump tied to trade tensions. From its spring low near $174, shares have climbed about 56 percent. The bank argues that Apple’s installed base, services ecosystem, and brand keep customer retention high, which supports steady cash returns and room for new hardware categories.
AI at the edge, plus new categories
Mohan frames AI as the next driver. He highlights Apple’s work to run intelligence on device, which cuts latency and helps with privacy. He also flags the option value from product ideas that build on that capability, including smart home devices and wearables.
“We consider the impact of Artificial Intelligence (AI) on Apple’s revenues, enhancing potential new product offerings (AI augmented eye-wear, in-house AI robots/smart home), while potentially being disruptive in other cases (AI impact on traditional search revenues).”
The note also raises iPhone unit estimates. Mohan sees stronger replacement demand for Pro models, helped by camera upgrades and longer battery life. He expects the mix to hold through the holiday quarter, which supports average selling prices and margins.
The bank says Apple’s scale does not cap growth. It points to services, where paid subscriptions and advertising continue to expand. It also sees room for new categories over the next few years that connect to the iPhone and to Apple’s chips. Bank of America calls Apple an eventual leader in AI at the edge, with earnings power that increases as on-device models become more capable.
Most analysts remain positive. LSEG data shows a majority of firms rate Apple a Buy or Strong Buy. The focus now shifts to guidance. If Apple signals high single-digit revenue growth and confirms the iPhone mix that Mohan outlined, the bank’s $320 target gains support. If guidance lands light, investors will look to AI features and services momentum to keep the story intact.
