India will account for 20% of Apple’s user growth over the next five years, Morgan Stanley estimates

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2 years ago

July 17, 2023

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Tim Cook, chief executive officer of Apple Inc., right, reacts to a customer carrying a Macintosh SE during the opening of the new Apple BKC store in Mumbai, India, on Tuesday, April 18, 2023. Cook officially opened Apple Inc.’s first company-owned store in India, betting the iPhone maker’s retail outlets will help accelerate sales growth. Photographer: Indranil Aditya/Bloomberg via Getty Images

Indranil Aditya | Bloomberg | Getty Images

India will likely be a major driver of Apple’s five-year revenue and installed base growth, Morgan Stanley analysts said in a note Monday, citing Apple’s investment in manufacturing in India and the country’s “economic boom.”

The note also reflected a new India-driven price target increase, from $190 to $220, with a bull-case valuation increased to $270. Morgan Stanley also reiterated Apple as their Top Pick.

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Morgan Stanley analysts forecast that over the next five years, the country could account for 15% of Apple’s revenue growth — in contrast to 2% in the past five years and $6 billion today — and 20% of the company’s installed base growth.

The revenue growth, which Morgan Stanley forecasts at $40 billion over the next 10 years, would be the “equivalent to Apple ramping an entirely new product category.”

The analysts cite a number of factors in their assessment, including India’s improved electrification and Apple’s clear efforts to build a manufacturing and retail presence in the country. A survey commissioned by Morgan Stanley suggested Indian consumers have an increased desire and ability to purchase iPhones.

Analysts did add a caveat, warning that if India fails to meet its economic and demographic growth marks, “we wouldn’t expect Apple to be as significant of a beneficiary in India.”

But Morgan Stanley’s fundamental thesis is bullish. “All-in, this means that India will be just as important to Apple’s growth algorithm over the next 5+ years as China was in the last 5 years, something we believe the market underappreciates today,” the analysts said.

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Musk’s xAI to close $15 billion funding round in December: sources

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3 hours ago

November 25, 2025

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Musk's xAI to close billion funding round in December: sources

Elon Musk attends the U.S.-Saudi Investment Forum in Washington, D.C., U.S., November 19, 2025.

Evelyn Hockstein | Reuters

Elon Musk’s artificial intelligence startup xAI is expected to close a $15 billion round at a $230 billion pre-money valuation next month, sources familiar with the matter told CNBC’s David Faber.

The deadline for allocation is the end of day on Tuesday, with the round expected to close on Dec. 19, the sources said.

This confirms earlier CNBC reporting that the company was raising $15 billion. The Tesla CEO later called the report on the round “False” in a post on the social media platform X.

At the time, sources told CNBC that xAI would use a large portion of the money for funding graphics processing units responsible for powering large language models.

CNBC had previously reported in September that the startup was looking to raise $10 billion at a $200 billion valuation.

The funding round is yet another sign of the insatiable demand for AI tools. Companies, including OpenAI and Anthropic, have raised billions and reached sky-high valuations as investors pour more money into companies building foundational AI models.

Sam Altman‘s OpenAI finalized a $6.6 billion-share sale at a $500 billion valuation last month, and Reuters recently reported that the ChatGPT maker was eying a $1 trillion initial public offering.

Anthropic closed a $13 billion funding round in September that roughly tripled its valuation from March.

Musk’s xAI is responsible for creating the Grok chatbot that has come under fire for disseminating hate speech, including antisemitic content. The company recently debuted Grokipedia, an AI-powered competitor to Wikipedia.

In March, Musk announced the merger of xAI with X in a deal valuing the social media platform at $33 billion.

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TSMC stock falls as it sues former exec alleging he took trade secrets to Intel

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3 hours ago

November 25, 2025

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TSMC stock falls as it sues former exec alleging he took trade secrets to Intel

TSMC on Tuesday filed a lawsuit against a former senior vice president it accused of leaking “confidential information” to Intel.

Wei-Jen Lo joined Intel after 21 years at TSMC, having left in July, the Taiwanese chip maker said in a statement, announcing the lawsuit.

The lawsuit is based on Lo’s employment contract and non-compete agreement with TSMC, and regulations such as the Trade Secrets Act, the statement said.

“There is a high probability that Lo uses, leaks, discloses, delivers, or transfers TSMC’s trade
secrets and confidential information to Intel,” it said.

TSMC’s share price fell on Tuesday and was last seen over 3% lower.

Intel did not immediately respond to CNBC’s request for comment.

It follows earlier reports by local media and later by Reuters, which stated Lo may have taken TSMC’s technology data to Intel. Taiwan’s High Prosecutors opened an investigation into the allegations.

Intel CEO Lip-Bu Tan told Bloomberg News last week that his “company respects intellectual property rights” and denied any wrongdoing.

The U.S. firm’s stock price moved 1.5% lower in mid-morning trade.