BofA Sees 'AI With Context And Privacy' As Apple's Key To Growth
Portfolio Pulse from Erica Kollmann
BofA Securities updated its outlook on Apple's Services segment, highlighting the integration of AI features announced at WWDC. BofA expects these AI features to drive a 14% increase in Services revenue year-over-year and boost overall margins in 2024. The firm also anticipates growth in App Store revenues despite potential EU regulatory impacts. Apple shares have gained over 12% in the past month, benefiting from these AI integration plans.
June 26, 2024 | 4:35 pm
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BofA Securities projects a 14% increase in Apple's Services revenue year-over-year due to new AI features, boosting overall margins in 2024. App Store revenues are also expected to grow despite potential EU regulatory impacts. Apple shares have gained over 12% in the past month.
The integration of AI features is expected to significantly boost Apple's Services revenue and overall margins, which is a positive indicator for the stock. The recent 12% gain in Apple shares further supports the positive market sentiment.
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