Apple Inc.’s (AAPL) Apple Intelligence may have faced some initial skepticism among industry experts, but according to brokerage firm Morgan Stanley, the technology is making significant strides with U.S. consumers. In March 2025, the firm's AlphaWise survey, which sampled 3,300 U.S. consumers, revealed unexpected positive feedback for Apple Intelligence. 

Analyst Erik Woodring pointed out that nearly 80% of eligible U.S. iPhone users have engaged with Apple Intelligence in the past six months. Furthermore, 42% of Morgan Stanley survey respondents emphasized the importance of having Apple Intelligence on their next iPhone, with 54% of those likely to upgrade within the next year feeling the same way.

While Apple may hold off on monetizing Apple Intelligence through subscriptions until it matures, the long-term potential is substantial. With over 1.4 billion iPhones globally, and 32% of U.S. users already utilizing Apple Intelligence, the platform could bring in billions annually. 

It turns out that users are willing to pay up to $9.11 a month for access to Apple Intelligence features. This shows the opportunity is ripe for growth. 

About Apple Stock

Cupertino, California-based Apple Inc. (AAPL) is well-known as a global technology powerhouse. The company, now valued at over $3 trillion, has designed an interconnected ecosystem that defines user loyalty. From its iconic iPhones and high-performing Macs to accompanying services like Apple Music and the App Store, Apple's unmatched user ecosystem has become its moat within the Big Tech realm. 

Recently, the company has doubled down on artificial intelligence (AI), integrating it across products to boost efficiency and personalize experiences. Over the last 52 weeks, AAPL stock has climbed by 25.3%, outperforming the broader equities market by a wide margin.

The stock trades at 27.55 times forward adjusted earnings and 7.36 times sales. The numbers reflect AAPL's premium valuation compared to industry norms, which means the stock is best-suited for growth-minded investors rather than value hunters.

While Apple is growth focused, the company does pay an annualized forward dividend of $1 per share, offering a yield of about 0.5%. With 11 consecutive years of dividend growth, Apple made its most recent payment of $0.25 per share on Feb. 13.

Apple: Q2 Earnings Preview

On Jan. 30, the tech juggernaut unveiled its fiscal 2025 first-quarter performance that nudged past Wall Street’s projections. Revenue inched up by 4%, landing at $124.3 billion and surpassing analyst expectations of $124.26 billion. EPS rose 10.1% to $2.40, comfortably ahead of the $2.35 forecast. The star of the show was the Services segment, clocking in $26.34 billion. The milestone signaled a clear pivot towards consistent, high-margin revenue channels that offer more stability than hardware sales alone.

The spotlight now shifts to Apple’s upcoming fiscal Q2 results, due out after tonight's closing bell. Following upbeat results from Meta (META) and Microsoft (MSFT), options traders are pricing in a bigger-than-usual 3.7% move in either direction for AAPL following tonight's report. 

Analysts anticipate a 5% rise in EPS to $1.61, with revenue expected at $94.56 billion. For fiscal 2025, EPS is forecasted to reach $7.17, up 6.2% annually.

What Do Analysts Expect for Apple Stock?

Morgan Stanley analyst Erik Woodring, has once again reaffirmed his bullish outlook on AAPL, assigning the stock an “Overweight” rating with a price target of $220. His endorsement joins the growing chorus of positive sentiment that surrounds AAPL, solidifying its standing in the market

Currently, Wall Street's consensus on Apple is a "Moderate Buy," a reflection of the widespread confidence analysts have in its potential. Out of 37 analysts, 19 are firm believers with a “Strong Buy,” four recommend a “Moderate Buy,” 12 suggest “Hold”, and only two voice caution with a “Strong Sell” stance. By comparison, AAPL had four “Sell” or worse ratings just a few months ago.

The average price target of $239.81 represents potential upside of 11.9%, while the Street-high target of $300 suggests that the stock can climb as much as 40.9% from the current price level.