Apple’s introduction of ARKit may very well prove to be a huge game changer. Not only have developers already put out a number of intriguing videos which showcase the power of Apple’s augmented reality tools, but Ikea this week announced its plans to roll out a new augmented reality app for the iPhone that will enable users to visualize what furniture and other household items will look like inside of their own homes. As Apple Senior VP Software Engineering Craig Federighi said at WWDC two weeks ago, the large installed base of iPhone and iPad users will effectively make “ARKit the largest AR platform in the world.”

One of the more enticing aspects regarding ARKit is that that its potential is only limited by the imagination of developers. As a result, UBS analyst Steven Milunovich believes that Apple’s foray into the world of augmented reality will help elevate Apple’s share price to record highs once augmented reality becomes more of a fixture in our day to day lives.

“Over a 2-3 year period Apple could equip the iPad and iPhone with AR-enabled hardware, such as sensors, 3D cameras, and custom chipsets,” Milunovich explained in a research note obtained by Business Insider. “Combined with an SDK integrated into iOS, this could enable a far richer AR experience than current tablets.”

Milinuovich lays out a series of 10 areas where Apple’s ARKit could potentially be leveraged, including gaming, healthcare and medicine, home improvement, real estate and more. Notably, there have been rumors that Apple has been busy prototyping a pair of augmented reality powered glasses, though it remains to be seen if such a product ever hits store shelves.

Based on what we’ve heard and seen from developers, ARKit has the power to open up vastly new mobile experiences across the board. Perhaps now we have a better idea as to why Tim Cook has been speaking so enthusiastically about the potential for augmented reality over the last few months.

Milinuovich currently has a $170 price target on Apple shares.

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