Apple Inc. (NASDAQ:AAPL) shares were steady on Wednesday as investors weighed long-term growth prospects and upcoming iPhone and services momentum.
The stock held near recent levels, even as Wall Street parsed fresh forecasts tied to revenue, margins, and product demand.
Bank Of America Securities analyst Wamsi Mohan reiterated the Buy rating on the stock, raising the price forecast from $270 to $320.
Also Read: Apple Q4 Preview: iPhone 17 Fuels Earnings Optimism As Stock Hits All-Time Highs
According to Benzinga Pro, AAPL stock has gained over 15% in the past year. Investors can gain exposure to the stock via Global X Funds Global X PureCap MSCI Information Technology ETF (NYSE:GXPT).
Long-Term Revenue and AI Outlook
Mohan outlined a five-year framework projecting Apple’s product and services revenue, including potential new offerings.
He evaluated AI’s impact on revenue and product roadmaps. AI could enhance eyewear and in-home robots, while pressuring traditional search-related revenues.
Mohan now projects fiscal 2025 revenue of $418 billion and earnings per share of $7.41.
The analyst forecasts Apple’s revenue, operating margin, and EPS for each year from 2025 to 2030. Building on that model, he runs scenarios for 2030 operating profit and EPS. Mohan varies product and services CAGRs and segment gross margins to test outcomes. In the analyst’s base case, 2030 EPS reaches $13.79. That implies a 14% six-year EPS CAGR, more than doubling 2024’s $6.29.
iPhone Estimates and Margin Outlook
Mohan raised his iPhone unit estimates on stronger iPhone 17 Pro and Pro Max demand.
He now models 57 million units for the fiscal fourth quarter 2025 and 80 million for the fiscal first quarter 2026. That compares with 55 million and 78 million in his prior forecast, and Street estimates of 54 million and 78 million.
For the fourth quarter, the analyst models a 46.4% gross margin versus guidance of 46% to 47%, noting upside from a better mix.
Mohan expects Apple to guide first-quarter revenue growth to high single digits year over year. For the first quarter, he models a 46.3% gross margin, with guidance possibly ranging from 46.5% to 47.5%.
AAPL Price Action: Apple shares were up 0.26% during regular trading and up 0.03% in after-hours trading on Wednesday, last trading at $269.77. The stock is trading near its 52-week high of $269.89, according to Benzinga Pro data.
Read Next:
Photo: hanohiki via Shutterstock.com
