01:00 PM EDT, 06/28/2024 (MT Newswires) -- Apple's ( AAPL ) move to incorporate artificial intelligence in iPhone, iPad, and Mac, is likely to add fuel to an anticipated revenue and earnings growth, Oppenheimer said in a Friday note.

Apple Intelligence is expected to advance hardware replacement and help iPhone, iPad and Mac gain market share, the investment firm said.

"The surprisingly deep integration of AI functions in upcoming iOS18 eliminate concerns that Apple ( AAPL ) is falling behind on AI," Oppenheimer said.

Oppenheimer raised its fiscal 2025 outlook to revenue of $439 billion from $414 billion and to earnings per share of $7.79 from $7.35 amid an "unprecedented opportunity for product differentiation and market share gain through AI," according to the note.

The updated revenue and EPS estimates are 6% and 7% higher than consensus, respectively, Oppenheimer said.

A key risk to this bullish outlook for fiscal 2025 is if the rollout of Apple Intelligence turns out slower than expected. "Apple Intelligence will stay in beta longer than the rest of iOS18. Limited language support and uncertainties of its release in the EU and mainland China also could delay device upgrades based on Apple Intelligence features," Oppenheimer said.

Oppenheimer maintained its outperform rating on the stock as it raised the price target to $250 from $200.

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