BUZZ-Street View: Apple's AI upgrades and China subsidies to boost sales

** Apple AAPL.O executives on Thursday forecast relatively strong sales growth, a sign the company will recover from a dip in iPhone sales as it rolls out artificial intelligence features.

** AAPL up 3.4% at $245.7 premarket

KEEPING THE APPLE CART STEADY

** J.P.Morgan ("overweight," PT: $270) says that while subsidies in the China market are still in their early stages, iPhones qualifying for these subsidies and a depleted channel inventory will help AAPL moderate its revenue decline in the region

** This is likely driving the company's confidence in guiding for low- to mid-single digit revenue growth in Q2, despite facing incremental foreign exchange(FX) headwinds, adds JPM

** TD Cowen ("buy," PT: $290) says iPhone is benefiting from early AI upgrades, with momentum expected to grow throughout the year; China demand may recover as AI features are introduced

** D.A.Davidson ("buy," PT: $290) says Apple Intelligence is boosting iPhone growth in regions where it's available, although the rollout is slower than expected

** Morgan Stanley ("overweight," PT: $275) believes iOS 18.4 launch in April will boost demand with an upgraded Siri, new App Intents APIs, and broader language support; however, these updates only slightly advance Apple Intelligence narrative after slower initial rollout