Apple shares hit record high amid AI investment

Apple shares surged 2.5% to a record high on Monday after Morgan Stanley raised its price target on the stock and designated it as a "top pick" due to the company's advancements in AI technology.

Morgan Stanley highlighted Apple Intelligence, unveiled last month, as a significant driver for device sales, encouraging customers to upgrade their iPhones and iPads to use the new AI features. This move is seen as Apple's attempt to catch up with AI leaders Google and Microsoft-backed OpenAI.

Apple's shares, which have increased nearly 20% this year, reached $236.30, giving the company a market value of $3.62 trillion. Morgan Stanley analysts emphasized that Apple Intelligence would boost iPhone and iPad shipments. Despite the new technology being compatible with only 8% of devices, analysts predict Apple could sell nearly 500 million iPhones over the next two years.

Previously expecting annual sales of 230-235 million iPhones, Morgan Stanley has now raised its price target for Apple shares to $273 from $216.