Can Apple Stock Make You a Millionaire?

There's no doubt that Apple (AAPL) has been one of the best-performing stocks in recent history. If you had invested $10,000 in Apple two decades ago, it would be worth around $2.5 million today. Much of this success can be attributed to the launch of the iPhone.

However, some believe that Apple's significant growth days might be behind it, as the revenue and sales from the iPhone are no longer increasing. The iPhone still represents about half of Apple’s overall revenue and profits. While Apple’s services division is doing well, it hasn't become the powerful growth engine that the iPhone was a few years back.

Before you decide to overlook Apple, it's worth examining what the future might hold for the company. Apple has plans that could potentially lead to more wealth for its shareholders.

Artificial Intelligence May Boost Sales

It's important to note that Apple stock is unlikely to see the same explosive growth it experienced after the iPhone launch in 2007. The iPhone's initial breakthrough was a unique event that shaped the tech landscape.

Even if Apple’s stock only achieves half the success level of the past two decades over the next 20 years, it would still outperform many other investment options during that time. Apple has some promising growth avenues to explore.

One of these avenues is artificial intelligence (AI). Although Apple was late to the AI scene, it has developed impressive AI tools that are user-friendly. The introduction of Apple Intelligence includes features like email summarization, writing aids, and photo enhancements, along with an upgraded Siri that acts more effectively as a digital assistant. These AI features operate directly on users' devices, speeding up usability and possibly increasing satisfaction with the technology.

According to market research company IDC, sales for smartphones equipped with generative AI features are expected to jump from 234 million units this year to 912 million by 2028, indicating growing consumer interest in these tools.

Expanding Into Chipmaking

Apple is also making strides in the chip manufacturing industry. In the past, the company relied on available semiconductors for its products like Macs and iPhones. However, Apple has recently moved towards designing its own chips, working with third-party manufacturers to produce them based on custom specifications.

What stands out is how Apple may leverage these semiconductors. While a portion of their research and development will be used in new iPhones and iPads, there’s speculation that Apple is creating processors for AI data centers, a significant step into a market it hasn’t previously pursued heavily.

Although Apple has not officially confirmed these plans, the company's silence is not unusual if they intend to make a substantial move into the AI data center sector. If Apple chooses this path, it has the technological expertise to make a considerable impact.

The AI data center market is projected to grow at an annual rate of 22.5% up to 2030, presenting a considerable opportunity for Apple.

The Future Looks Promising

While we can never expect another product like the iPhone to launch again, which drove Apple's unprecedented growth, there are still opportunities for current and future Apple investors. The company is transforming, and its ability to adapt in a rapidly changing market can help potential investors achieve their financial goals.

In a landscape where many companies struggle to evolve, Apple's adaptability places it in a favorable position for growth in new sectors. This suggests that Apple can still be a strong contributor to reaching the goal of saving a million dollars.

Note: The author has no position in any stocks mentioned. This article does not constitute investment advice.

Apple, Stock, Investing