Apple Reports Record Q3 Sales Fuelled by AI Investments, Global iPhone Demand

Apple is positioned for significant growth driven by artificial intelligence and new product launches, according to multiple analyst reports. Wedbush's Dan Ives compares Apple to Tesla, noting that both are perceived as late to AI but are poised to benefit from upcoming consumer applications, with the iPhone 17 expected to see up to 250 million units sold due to pent-up demand. Morgan Stanley raised its price target to $305, citing strong fiscal Q4 results, robust iPhone demand ahead of the rumored iPhone 18 foldable, and a planned 27% increase in R&D spending focused on AI. Analysts from JPMorgan, Goldman Sachs, and Bank of America also upgraded their price targets, highlighting record iPhone and services sales, strong margins, and confidence in Apple's AI investments and product pipeline. Despite some supply constraints and geopolitical challenges, Apple reported better-than-expected revenue and profit, with services growth helping to offset concerns about regulatory risks and market volatility. While Greater China revenue missed expectations, Apple continues to see positive growth in shipments and is viewed as an eventual winner in AI integration and consumer technology.