• Apple could be valued at $4 trillion by the end of 2025, Wedbush estimated.
• That's due to key developments, like its next iPhone cycle and the new Vision Pro headset.
• It's a sign Apple is "playing chess" while others in the industry are playing checkers, the research firm said.

Apple could become a $4 trillion company by the end of 2025, as the tech giant is "playing chess" with its next iPhone cycle and Vision Pro developments, according to Wedbush.

In a note on Wednesday, the research firm raised its 12-month price target on Apple stock to $220 from $205, implying 23% upside within the next year. 

Apple dipped 0.2% early Wednesday, putting its market cap at about $2.8 trillion. Shares are up 43% for the year. 

As part of its bullish view, Wedbush pointed to the expected to launch of Apple's iPhone 15 in September, which could boost profits as there are around 250 million iPhones that haven't been upgraded in the past four years. Total iPhone unit sales in 2023 could notch 235 million, Wedbush estimated.

And while few Wall Street strategists expect the latest Vision Pro to become a mass market device, the gadget's release is part of the bull narrative for Apple, Wedbush added, particularly as it develops a new app store for the mixed-reality headset.

"Apple playing chess while others play checkers. In FY24 the Cupertino stalwart is on pace to approach $100 billion in annual services revenue growing double digits which is a jaw dropping trajectory vs. the roughly $40 billion+ of services revenue that Apple was delivering only in FY20," Wedbush said.

On Tuesday, Wedbush called the Vision Pro a "revolutionary product" and predicted first-year sales of 150,000 units and second-year sales of 1 million units, assuming a lower price point.

Elsewhere on Wall Street, Bank of America expects Apple to sell 1.5 million units of the Vision Pro in its first year.