Tag: Apple Inc. (AAPL)

NVIDIA (NVDA) vs. Advanced Micro Devices (AMD): Which Stock Is Proving to Be the Better Long-Term AI Buy

Posted on by The INO.com Team

After its earnings release on May 24, the Santa Clara-based graphics chip maker NVIDIA Corporation (NVDA) stole the thunder by becoming the first semiconductor company to hit a valuation of $1 trillion.

NVDA has also blown away Street expectations ahead of its quarterly earnings release on August 23, with profits for the current quarter expected to be at least 50% higher than analyst estimates and the momentum expected to continue in the foreseeable future.

On the other hand, since its humble beginnings as a supplier for Intel Corporation (INTC), Advanced Micro Devices, Inc. (AMD) has come a long way. During its earnings release for the second quarter, despite persistent weakness in the PC market, the company’s result topped analyst estimates.

While NVDA has carved its niche and cornered a significant share of the GPU domain through advancements in parallel (and consequently accelerated) computing which began back in 2006 with the release of a software toolkit called CUDA, Chair and CEO Dr. Lisa Su is widely credited with AMD’s turnaround and transition from being widely dismissed due to performance issues and delayed releases to being the only company in the world to design both CPUs and GPUs at scale.

The New (Perhaps Only) Game in Town

As a general-purpose technology, such as the steam engine and electricity, Artificial Intelligence (AI) that has already been touching and influencing all facets of our life, including how we shop, drive, date, entertain ourselves, manage our finances, take care of our health, and much more.

However, late in November of last year, when OpenAI opened its artificial intelligence chatbot, ChatGPT, to the general public, all hell broke loose. The application took the world by storm. It amassed 1 million users in five days and 100 million monthly active users only two months into its launch to become the fastest-growing application in history.

The generative AI-powered application’s capability to provide (surprisingly) human-like responses to user requests equally fascinated and concerned individuals, businesses, and institutions with the possibilities of the technology. A large language model or LLM powers ChatGPT. This gives the application the ability to understand human language and provide responses based on the large body of information on which the model has been trained.

NVDA is reaping the rewards for all that invisible work done in the field of parallel computing. Parallel computing was ideal for artificial neural networks' deep (machine) learning. As a result of that head start in the AI tech race, its A100 chips, which are powering LLMs like ChatGPT, have become indispensable for Silicon Valley tech giants.

To put things into context, the supercomputer behind OpenAI’s ChatGPT needed 10,000 of NVDA’s famous chips. With each chip costing $10,000, a single algorithm that’s fast becoming ubiquitous is powered by semiconductors worth $100 million.

However, AMD isn’t too far behind either. According to Dr. Su, Data Center is the most strategic piece of business as far as high-performance computing is concerned. AMD underscored this commitment with the recent acquisition of data center optimization startup Pensando for $1.9 billion.

At the premiere, AMD’s ambitions to capitalize on the AI boom were loud and clear, with the launch of MI300X (a GPU-only chip) as a direct competitor to NVDA’s H100. The chip includes 8 GPUs (5nm GPUs with 6nm I/O) with 192GB of HBM3 and 5.2TB/s of memory bandwidth.

AMD believes this will allow LLMs’ inference workloads that require substantial memory to be run using fewer GPUs, which could improve the TCO (Total Cost of Ownership) compared to the H100.

The Road Ahead

The optimism surrounding both companies is justified.

With NVDA’s presence in data centers, cloud computing, and AI, its chips are making their way into self-driving cars, engines that enable the creation of digital twins with omniverse that could be used to run simulations and train AI algorithms for various applications.

On the other hand, AMD has also been training its guns to exploit the burgeoning AI accelerator market, projected to be over $30 billion in 2023 and potentially exceed $150 billion in 2027.

AMD is one of the few companies making high-end GPUs needed for artificial intelligence. With AI being seen as a tailwind that could drive PC sales, the company announced plans to launch new Radeon 7000 desktop GPUs at its quarterly earnings release. It is being speculated that the GPU will come with two 8-pin PCIe power connectors and four video out ports, including three DisplayPort 2.1 and one HDMI 2.1.

Caveats

AMD existed as both a chip designer and manufacturer, at least until 2009. However,  significant capex requirements associated with manufacturing, amid financial troubles in the wake of the Great Recession, compelled the company to demerge and spin off its fab to form GlobalFoundries Inc. (GFS), which has been focused on manufacturing low-end chips ever since.

Today, both NVDA and AMD operate as fabless chip companies. Hence, both companies face risks of backward integration by companies such as Apple Inc. (AAPL), Amazon.com, Inc. (AMZN), and Tesla Inc. (TSLA) with the wherewithal to develop the intellectual capital to design their own chips.

Moreover, almost all of the manufacturing has been outsourced to Taiwan Semiconductor Manufacturing Company Ltd. (TSM), which has yet to diversify significantly outside Taiwan and has become the bone of contention between the two leading superpowers.

With geopolitical risk being the potential Achilles heel for both companies, their efforts toward geographical diversification also receive much-needed political encouragement through the Chips and Science Act.

Dr. Su, who also serves on President Biden’s council of advisors on science and technology, pushed hard for the passage of the Act. It is aimed at on-shoring and de-risking semiconductor manufacturing in the interest of national security by setting aside $52 billion to incentivize companies to manufacture semiconductors domestically.

Bottom Line

Given its massive importance and cornucopia of applications, it’s hardly surprising that Zion Market Research forecasts the global AI industry to grow to $422.37 billion by 2028. Hence, this field has understandably garnered massive attention from investors who are reluctant to miss the bus on such a watershed development in the history of humankind.

Hence, in view of product diversification, increasing traction in the GPU segment, and relatively higher valuation comfort, investors in AMD could benefit from more sustained upside potential compared to NVDA.

US Bond Market Teeters on the Brink of Collapse – Seek Refuge in These 4 Stocks

Posted on by The INO.com Team

Last week, in line with broad expectations on the Street, Federal Reserve Chair Jerome Powell announced the unanimous decision by the FOMC to raise key interest rates by another 25 bps. With this move, the central bank has raised the benchmark borrowing cost to 5.25%-5.50%, ratcheting it up from nearly 0% in about 16 months.

With a 2.6% rise in inflation, down from a 4.1% rise in Q1 and well below the estimate for an increase of 3.2%, and an annualized increase of 2.4% in the gross domestic product in the second quarter, topping the 2% estimate, there is increasing belief in the Market that Jerome Powell and his team at the Federal Reserve may be on the cusp of achieving the elusive “soft landing.”

In Mr. Powell’s words, “The staff now has a noticeable slowdown in growth starting later this year in the forecast, but given the resilience of the economy recently, they are no longer forecasting a recession.”

However, ECB raised interest rates by a quarter percentage point shortly after, citing persistent inflation. In such a scenario, despite increased optimism, businesses are expected to remain weighed down by high borrowing costs, and economic activity is expected to remain stifled due to relatively scarce credit.

Hence, there is still a significant probability that in order to overcompensate for the infamous “transitory” call that caused the Fed to arrive (really) late in its fight against demand-driven inflation, the central bank may be sowing the seeds of economic stagflation.

Moreover, with every increase in benchmark interest rates, a selloff of long-duration fixed-income instruments, such as the 10-year treasury notes, gets triggered, which causes a slump in their market value and a consequent increase in their yields. This also increases the benchmark 30-year mortgage rates, thereby depressing demand and deepening the crisis in which real estate has lately been finding itself.

After benchmark 10-year yields jumped by as much as 15 basis points above the key 4% level, Peter Schiff, CEO and chief economist at Euro Pacific Asset Management, warned of a crash in Treasuries. He has also predicted the benchmark 30-year mortgage rates to soon hit 8%, a level last seen in 2000.
Mr. Schiff’s apprehensions have also been echoed by David Rubenstein, co-founder of The Carlyle Group, who expressed his concern regarding the fate of commercial real estate as millions of people stay home and companies try to figure out what to do with empty offices.

An increase in borrowing costs would not just raise the cost of servicing the $32.7 trillion national debt; significant markdowns prices of legacy bonds and an inability by borrowers to service them due to economic slowdown could crush the loan portfolios of struggling banks and make them go the way of the dodo, such as the Silicon Valley Bank and the First Republic Bank.

With the Bank of Japan’s policy tweak of loosening its yield curve control sparking widespread shock in the markets that have been teetering on the brink of collapse, there is a material risk that an apparently resilient economy could find itself regressing into a full-blown recession just as Jerome Powell’s colleagues at the Federal Reserve have stopped forecasting it.

With HSBC Asset Management’s warning that a U.S. recession is coming this year, with Europe to follow in 2024, gaining credibility with each passing day, investors increasing their stakes in fundamentally strong businesses could be a time-tested method to navigate Mr. Market’s wild mood swings between unbridled euphoria and manic depression.

Here are a few stocks that are worth considering amid this backdrop:

Apple Inc. (AAPL)

According to a recent note from Fairlead Strategies, the technology and consumer electronics giant could witness a major upside in its stock. According to the agency, the stock could jump to $254 by the end of 2024.

AAPL, which has a history of revolutionizing products like the personal computer, smartphone, and tablet, has begun scripting the next key chapter in its success story with the announcement of its first product in the AR/VR market, the Apple Vision headset, which will sell for $3,499 when it is released early next year.

Regardless of any near-term and temporary softness and slowdown, a compounding machine such as AAPL, which boasts a sticky user base with a retention rate of over 90%, assures the company of adequate cash flow through repeat purchases and upgrades.

Moreover, AAPL’s board authorized $90 billion in share repurchases and dividends. It spent $23 billion in buybacks and dividends in the March quarter and raised its dividend by 4% to 24 cents per share.

Through relentless share repurchases, AAPL increased the existing shareholders' stake by decreasing its float, thereby increasing the remaining shares' intrinsic value (and consequently the price) without a proportional rise in market capitalization.

Johnson & Johnson (JNJ)

JNJ has been around for 135 years and is a worldwide researcher, developer, manufacturer, and seller of various healthcare products. The company operates through three segments: Consumer Health; Pharmaceuticals; and MedTech.

Over the past three years, which have been turbulent, to say the least, JNJ’s revenue has grown at a 6.7% CAGR. During the same period, the company also registered EBITDA and total asset growth of 7.7% and 8.1%, respectively.

Despite flagging sales of Covid 19 Vaccines, JNJ’s reported sales during the fiscal year 2023 second quarter increased by 6.3% year-over-year to $25.53 billion. During the same period, the company’s adjusted net earnings increased by 6.5% and 8.1% year-over-year to $7.36 billion and $2.80 per share, respectively.

In addition to its robust financials, the relative immunity of its demand and margins to potential economic downturns make it an attractive investment option for solid risk-adjusted returns.

Walmart Inc. (WMT)

In a previous discussion, we deliberated on how, despite inflationary pressures and online retail altering brick-and-mortar stores in today’s economy, budget retailers, such as WMT, have been relatively immune to the seismic shifts in the consumption ecosystem.

In fact, WMT has attracted new and more frequent shoppers, including younger and wealthier customers, who are turning to Walmart for both convenience and value. Consequently, according to its earnings release for the first quarter of the fiscal year 2024, the big-box retailer surpassed expectations for both earnings and revenue, with sales rising by nearly 8%.

Encouraged by the strong performance, WMT also raised its full-year guidance. It anticipates consolidated net sales to rise about 3.5% in the fiscal year. It expects adjusted earnings per share for the full year will be between $6.10 and $6.20.

WMT’s sales have reflected the shift toward groceries and essentials, with the former accounting for nearly 60% of the annual U.S. sales for the nation’s largest grocer. In fact, WMT’s grocery business helped to offset weaker sales of clothing and electronics, as sales of general merchandise in the U.S. declined mid-single-digits, while sales of food and consumables increased low double-digits.

Another bright spot for the retail giant has been growth in online sales, which jumped 27% and 19% year-over-year for Walmart U.S. and Sam’s Club, respectively. According to Rainey, curbside pickup and home delivery of online purchases fueled the growth.

Far from being complacent, WMT has been doubling down on initiatives, such as reducing and optimizing packaging and leveraging AI/ML to increase the efficiency of its operations.

Duke Energy Corporation (DUK)

As an energy company, DUK operates through two segments: Electric Utilities and Infrastructure (EU&I) and Gas Utilities and Infrastructure (GU&I).
Over the past three years, DUK’s revenue increased at a 5.4% CAGR, while its EBITDA has increased by 4.2% CAGR over the same time horizon.

On July 13, DUK announced its quarterly cash dividend of $1.025 per share of common stock, an increase of $0.02, and $359.375 per share on its Series A preferred stock, equivalent to $0.359375 per depositary share, payable on Sept.18, 2023, to shareholders of record at the close of business on Aug.18, 2023.

DUK currently pays $4.10 per share of common stock as annual dividends, which have grown for the past 11 years and at 2.5% CAGR over the past five years. Through the consistent return of capital, DUK provides adequate income generation opportunities for investors to help them tide over economic uncertainty.
On July 6, at Amazon Air Hub, DUK unveils Kentucky's largest utility-scale rooftop solar site, consisting of over 5,600 photovoltaic panels. It will feed up to 2 megawatts of solar power directly onto the electric distribution grid.

Utility companies such as DUK provide essential services that remain relevant and in demand regardless of economic inconsistencies.

NVIDIA (NVDA) Mirrors Apple's Success, Unleashing Another Stock Surge – Is There Still a Chance to Buy?

Posted on by The INO.com Team

Artificial Intelligence (AI) has been the flavor of the season so far, driving up share prices of tech giants as they focus more on AI. This has resulted in the resurgence of the Nasdaq Composite, which gained more than 30% year-to-date. NVIDIA Corporation (NVDA) is at the forefront of this AI revolution, and investors’ interest in the stock led to its shares gaining more than 200% year-to-date.

NVDA founder and CEO Jensen Huang earlier this year said, “AI is at an inflection point, setting up for broad adoption reaching into every industry. From startups to major enterprises, we are seeing accelerated interest in the versatility and capabilities of generative AI.”

Last month, NVDA became the sixth company to surpass the $1 trillion market capitalization. Its revenue and earnings in the first quarter beat Street estimates. Its revenue topped analyst estimates by 10.3%, while its earnings came 18.8% above the consensus estimate. The company reported record data center revenue of $4.28 billion during the first quarter.

NVDA is garnering investors’ interest due to its leadership and expertise in AI. Given the growing popularity of ChatGPT, the generative AI industry is expected to witness robust growth. NVDA is a leader in advanced AI chips required for generative AI. Apart from generative AI, there is a growing demand for accelerated computing.

The company’s graphic processing units (GPUs) are used in supercomputers, data centers, and drug development. Its GPUs are used as accelerators for central processing units (CPUs). Founder and CEO Jensen Huang said, “The computer industry is going through two simultaneous transitions – accelerated computing and generative AI.”

“A trillion dollars of installed global data center infrastructure will transition from general-purpose to accelerated computing as companies race to apply generative AI into every product, service, and business process,” he added.

NVDA is boosting the production of its entire data center range of products like H100, Grace CPU, Grace Hopper Superchip, NVLink, Quantum 400 InfiniBand, and BlueField-3 DPU to meet the rising demand for AI technology.

Melius Research analyst Ben Reitzes said that NVDA reminds him of Apple Inc. (AAPL). He said, “NVDA is the obvious flagship AI company, whose decisions over the last two decades have positioned it for long-term benefits.”

“With a full-stack approach that, in our experience, tends to deliver an outsized profit share in the industry for longer than expected once the ball starts rolling downhill due to developer support and becoming an industry standard,” he added. The analyst has a Buy rating on the stock with a price target of $625.

For the second quarter of fiscal 2024, NVDA’s revenue is expected to be $11 billion, plus or minus 2%. Its non-GAAP gross margins are expected to be 70%, plus or minus 50 basis points.

Here’s what could influence NVDA’s performance in the upcoming months:

Disappointing Financials

NVDA’s revenue for the first quarter ended April 30, 2023, declined 13% year-over-year to $7.19 billion. Its non-GAAP operating income fell 23% year-over-year to $3.05 billion. The company’s non-GAAP net income declined 21% over the prior-year quarter to $2.71 billion. In addition, its non-GAAP EPS came in at $1.09, representing a decline of 20% year-over-year.

Favorable Analyst Estimates

Analysts expect NVDA’s EPS for fiscal 2024 and 2025 to increase 136.9% and 35.6% year-over-year to $7.91 and $10.71. Its fiscal 2024 and 2025 revenue is expected to increase 60.9% and 27.8% year-over-year to $43.39 billion and $55.46 billion.

For the quarter ending July 31, 2023, NVDA’s EPS and revenue are expected to increase 305.8% and 65.1% year-over-year to $2.07 and $11.07 billion, respectively.

Stretched Valuation

In terms of forward EV/EBITDA, NVDA’s 58.50x is 298.3% higher than the 14.69x industry average. Likewise, its 25.35x forward EV/S is 752.6% higher than the 2.97x industry average. Its 56.39x forward non-GAAP P/E is 139.3% higher than the 23.56x industry average.

High Profitability

In terms of the trailing-12-month net income margin, NVDA’s 18.52% is 821% higher than the 2.01% industry average. Likewise, its 23.53% trailing-12-month EBITDA margin is 174.8% higher than the industry average of 8.57%. Furthermore, the stock’s 6.65% trailing-12-month Capex/Sales is 181.8% higher than the industry average of 2.36%.

Bottom Line

Given the vast generative AI and accelerated computing market, NVDA is in a sweet spot. Its earnings are expected to more than double this year, driven by rising chip sales for data centers and artificial intelligence. Demand for GPUs from gaming is also likely to recover this year.
Moreover, the company is well-positioned to benefit from the chip demand from autonomous cars, cryptocurrency mining, and adopting the metaverse.
However, given its stretched valuation, it could be wise to wait for a better entry point in the stock.

Apple (AAPL) vs. Meta Platforms (META): The VR Battle Begins!

Posted on by The INO.com Team

Technology and consumer electronics giant Apple Inc. (AAPL), which has a history of revolutionizing products like personal computers, smartphones, and tablets, has of late been in the thick of things.

AAPL announced its partnership with the game-development software maker Unity and unveiled a slew of other new products. Its year-ahead product roadmap includes the new Apple Watch Ultra along with the traditional fall launch lined up for the iPhone 15. The company is also expected to ship new M3-powered laptops and OLED-screen iPads by next year.

However, last month, AAPL, which boasts a sticky user base with a retention rate of over 90%, grabbed headlines by announcing its entry into the augmented reality/virtual reality (AR/VR) market with the Apple Vision Pro headset, which is set to hit the shelves early next year.

However, shortly before AAPL’s big release, incumbent technology heavyweight Meta Platforms, Inc. (META) also made its presence felt by unveiling its latest VR headset, the Quest 3, on June 1.
With the scheduled September 27 release of the successor to the Quest 2 headset, which was released in the fall of 2020, META expects to cement its position in the intensifying battle for a greater share of the steadily growing immersive technology pie.

With the battle lines in the AR/VR wars firmly drawn, we attempt to compare the weapons of both contenders to speculate which one is likely to come out on top.

Design

As with all of the other offerings in its product portfolio, AAPL has placed the user at the center of the design philosophy for the Vision Pro Headset. It has done away with the need for controllers, freeing users to navigate the AR/VR space with eyes, hands, and voice.

The headset is also made with two micro-OLED displays that let people around the users see their eyes on the outside while they are in the AR mode but not when they have switched to VR, thereby intelligently signaling availability.

The Quest headset comes with ergonomic controllers for interaction, with hands-free options. It has three cameras on the front that may improve visibility of the real world for users wearing the headset and interacting with applications. However, unlike the Vision Pro, the headset comes without a glass front.

AAPL’s Vision Pro is designed with two padded straps with cushioning on the back for added comfort. In contrast, META’s Quest 3 is 40% thinner than its predecessor and is fitted with three straps for weight distribution.

With the battery of the Vision Pro being external, corded, and compact enough to be placed and carried in pockets, it is apparently safer than Quest 3, which has its battery built into the headset.

Specifications

The Vision Pro comes with a micro-OLED display that delivers a 4K resolution for each eye with a refresh rate of 90 Hz. In comparison, the Quest 3 LCD comes with a resolution of 2,064 x 2,208 per eye and a refresh rate of 120Hz.

Regarding the chips powering the headset, Vision Pro comes with the Apple M2 processor, which can also be found in MacBook Air, MacBook Pro, and iPad Pro devices. However, the brand-new and purpose-built R1 chip would be used to process camera information. The Qualcomm Snapdragon XR2 Gen 2 chip will power the Quest 3.

The Vision Pro will have up to 16 GB RAM with 64 GB storage, while the Quest 3 offers 12 GB RAM with 128 GB storage. Both headsets claim to last up to two hours on a full charge. However, the former can be used without the battery while plugged into a socket.

Software & Support

The Vision Pro comes with a new operating system known as Vision OS that also lets users interact with familiar iOS and macOS apps in a mixed-reality environment. In comparison, the Quest 3 runs on Android open-source software.

While both headsets enable users to watch movies, browse the internet, and work using a virtual keyboard like one would using a physical computer, the Quest 3 is optimized for a fully immersive virtual reality gaming experience with haptic feedback technology that gives users a sense of touch.
Moreover, while the application software ecosystem is expected to be gradually populated as more game developers jump on board, Quest 3 offers more games from its VR store.

Cost

Compared to the Quest 2, which had a starting price of $299 during its release in the fall of 2020 and was later raised to $399 in July 2022, the Quest 3 would be available for $499.

However, the Vision Pro is in a league of its own as it would sell for an eye-watering $3,499 when it is released early next year.

In addition, AAPL has been forced to make significant cuts in its forecasted production for the Vision Pro due to design complexities resulting in apparent production difficulties for the Chinese contract manufacturer Luxshare.

These delays could also negatively impact AAPL’s plans to begin work on two new and bifurcated product lines, one second-generation high-end model that will continue the original Vision Pro and the other a lower-end version.

Bottomline

While AAPL’s Vision Pro triumphs concerning design and features, META scores higher in pricing, availability, and suitability for gaming applications.
Hence, as with its other offerings, AAPL has the better product for those who feel that the quality is worth the wait and the hefty price tag.

Apple Inc. (AAPL) Unbeatable Buy for 2024, Set to Skyrocket 37%?

Posted on by The INO.com Team

According to a recent note from Fairlead Strategies, technology and consumer electronics giant Apple Inc. (AAPL) could witness a major upside in its stock. According to the agency, the stock has confirmed its breakout above the record high of $183. Consequently, its shares could jump to $254 by the end of 2024.

Given that this is one of those relatively-rare occasions in the world of investment research in which a forecast has been accompanied by a time horizon, in this piece, we evaluate the likelihood of this upside which could elevate iPhone maker’s market capitalization from its current levels of $2.96 trillion to $4 trillion.

AAPL has a lot going for it at this point in time. Its fiscal second-quarter earnings exceeded Street expectations, driven by stronger-than-expected iPhone sales.

The company, which has a history of revolutionizing products like the personal computer, smartphone, and tablet, has begun scripting the next key chapter in its success story with the announcement of its first product in the AR/VR market, the Apple Vision headset, which will sell for $3,499 when it is released early next year.

In addition, AAPL also announced its partnership with the game-development software maker Unity and unveiled a slew of other new products. Its year-ahead product roadmap includes the new Apple Watch Ultra along with the traditional fall launch lined up for the iPhone 15.
The company is also reportedly beginning work on two new and bifurcated product lines, one second-generation high-end model that will be the continuation of the original Vision Pro and the other a lower-end version. It is also expected to ship new M3-powered laptops, and new OLED-screen iPads will ship by next year.

The Catch

With a strong product portfolio and a healthy pipeline, there seems to be little, if any, that can hinder AAPL’s progress from strength to strength. However, the company isn’t immune to macroeconomic headwinds.

AAPL reported $24.16 billion in net income during the quarter compared to $25.01 billion in the previous-year period. Moreover, sales have declined for two straight quarters, with total revenue down 3% from $97.28 billion in the prior quarter.

With macroeconomic challenges in digital advertising and mobile gaming, part of AAPL’s services business, finance chief Luca Maestri said the company expects overall revenue in the current quarter to decline about 3%.

Hence, brand equity apart, AAPL is quite an expensive stock to own based on fundamental financial performance.
Pros Outweigh Cons

Regardless of the near-term and temporary softness and slowdown, traditional valuation metrics seem inadequate to gauge the quality of a compounding machine such as AAPL, which boasts a sticky user base with a retention rate of over 90% that assures the company adequate cash flow through repeat purchases and upgrades.

Moreover, AAPL’s board authorized $90 billion in share repurchases and dividends. It spent $23 billion in buybacks and dividends in the March quarter and raised its dividend by 4% to 24 cents per share.

Through relentless share repurchases, the company increased the existing shareholders' stake by decreasing its float.

By decreasing the number of outstanding shares, AAPL has been increasing the remaining shares' intrinsic value (and consequently the price) without a proportional rise in market capitalization. AAPL’s current market cap is $2.96 trillion, with 15.79 billion shares outstanding, compared to a market cap of $2.97 trillion, with 16.33 billion shares outstanding as of January 3, 2022.

Bottomline

Given the above, if the Federal Reserve and other major central banks manage to engineer the much coveted ‘soft landing’ and all else remains (at least) equal, there is a significant likelihood that AAPL can achieve a record share price by the end of 2024.