Despite the downturn that the US stock market has faced this year, there is still immense potential in the tech space. Indeed, there is one company that could be set to surge in the space. Indeed, Apple (AAPL) has entered the AI data center game with a $1 billion move as its shares eye a trip to $325.
For much of the year, questions regarding Apple’s AI strategy have been prevalent. It has struggled for the last three months as the emerging technology has continued to be the focus of many of its competitors. However, this move could bring it closer to bridging that gap.
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Apple Joins Data Center Field as Stock Could Surge When Market Turns
There are few companies in the world that are as well known as Apple. The iPhone developer has been behind some of the most popular retail tech products in recent memory. Moreover, that has only translated into its own success. The company was the first to reach a $2 trillion and $3 trillion market cap.
There were expectations that it could be the first to hit $4 trillion, despite the 170% surge Nvidia (NVDA) experienced last year. Although the company has taken a step back this year, it is looking to rectify its position in the emerging AI arms race. Specifically, Apple (AAPL) has entered the AI data center game with a new $1 billion investment that could propel the stock.
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According to a report from Investors Business Daily, Apple is currently in the process of ordering around $1 billion in Nvidai GB3000 NVL71 systems. That investment equates to around 250 servers at $37 million apiece. “AAPL is officially in the large server cluster Gen AI game,” Loop Capital analyst Ananda Baruah said Monday.
That could secure what is already a positive trajectory for the company. Currently sitting at $222, Apple has a median price target of $255, up 14% from its position. However, that is not all. According to CNN data, it has a high-end projection of $325.
Indeed, that would see the stock jump more than 45% over the next 12 months. With its entrance into the key market, that doesn’t appear to be as out of reach as some may have expected.
