- Apple could soar past its $3 trillion valuation and hit $4 trillion by 2025, Wedbush said.
- Analysts expected double-digit revenue growth thanks to the iPhone 15 and Vision Pro developments.
Apple stock will soar past its current $3 trillion market cap, and the tech giant could be worth $4 trillion within the next two years, according to a Wedbush note on Wednesday.
The research firm noted the iPhone maker is nearing a $3 trillion valuation, which it first reached in January 2022.
But the stock is likely worth even more, Wedbush analysts said, estimating a fair valuation that could be $3.5 trillion. And under a bull-case scenario, the company could hit $4 trillion by 2025, they said, representing a 25% increase.
Wedbush said the key to that lofty view is Apple's services business, which analysts estimated is on track to approach $100 billion in annual revenue in fiscal 2024, up from $50 billion in 2020. The revenue potential from services alone carries a valuation of $1.4 trillion, the note added.
Meanwhile, the upcoming iPhone 15 could benefit from a "mini super cycle," analysts said, as there are about 25% of loyal Apple customers who haven't upgraded their iPhones in four years.
"The Apple bears and skeptics continue to scratch their heads as many have called for Apple's 'broken growth story' this year in a tougher backdrop to which we firmly believe the opposite has happened," analysts said, adding that the tech giant was in for a "renaissance of growth" over the next year to year-and-a-half.
Lastly, Apple has potential to incorporate AI into its Vision Pro App store, which could play to its "massive advantage" against its rivals, analysts said.
Other Wall Street strategists are similarly bullish on Apple. Fairlead Strategies also gave a comparable price target for Apple, and predicted the company would notch $4 trillion valuation over the long-term.