Commentators have made a big fuss about Apple (NASDAQ:AAPL) stock achieving a $3 trillion market capitalization.
Yet, that milestone might only be the beginning for Apple. By 2025, AAPL stock should be much higher than it is today, even after a strong first half of 2023.
Sure, people have been talking about Apple’s Vision Pro virtual reality (VR) headset and its to $3,499 price tag. That product could be a major revenue generator for Apple, no doubt.
However, there will be other growth drivers for Apple stock, so consider taking a share position now.
ChatGPT Response Could Propel AAPL Stock
For now, Apple’s bread and butter is the company’s iPhone sales.
There’s good news on that front, as Apple is (according to Reuters and Bloomberg) “asking suppliers to produce about 85 million units of the iPhone 15 this year,” and that figure is” roughly in line with the year before.”
Strong iPhone production and sales should give Apple stock a boost. However, the company needs to develop other leading-edge technologies, as well. For instance, Apple must take the leap into generative AI technology or else risk getting left behind.
To that end, Apple is reportedly developing its response to OpenAI’s ChatGPT with (according to Fortune and Bloomberg) a “framework to make large language models” or LLMs, known as “Ajax,” as well as an AI chatbot informally known as “Apple GPT.”
Apple will probably come up with its own name for the company’s in-development AI chatbot. Currently, it’s difficult to estimate how much this will add to the company’s market cap.
It’s probably safe to say, however, that Apple’s brand-name recognition will enable the company’s AI chatbot to gain a foothold in the market and establish a significant new revenue source.
Apple’s Huge Opportunity in India
Along with Apple’s forthcoming entry into the generative AI arms race, there’s another long-term catalyst for investors to consider.
In particular, Apple can generate substantial revenue in an emerging nation that became the world’s most populous country earlier this year.
According to Morgan Stanley analyst Erik Woodring, Apple’s business in India has the potential to expand seven-fold over the next decade. With that, Woodring posits, Apple could achieve annual revenue of $40 billion in India.
That would represent vast growth, as Apple currently only derives $6 billion of its revenue from India. Already, Apple has gained a foothold by opening stores in India and established local manufacturing capabilities there.
Bear in mind, India’s large population and emerging middle class with discretionary income make the country a prime revenue source for Apple.
So, while China has been significant to Apple’s business over the past five years, Woodring sees India as highly significant to Apple during the next five years.
So, Here’s My Apple Stock Prediction for 2025
It will be exciting to see the LLM and AI chatbot products that Apple introduces into the market. Also, I concur with Woodring’s assessment. India’s vast market will certainly be important to Apple in the coming years.
In other words, Apple’s valuation has the potential to expand far beyond the $3 trillion mark. I expect AAPL stock to reach at least $400 by 2025.
The only obstacle to that milestone would be a deep recession. If that occurs, everyone will have to adjust their Apple stock price predictions accordingly.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
