Apple Rated Outperform with $300 Target, M5 Chips Boost AI Performance
BNP Paribas upgraded Apple to Outperform with a $300 price target, highlighting its scale, premium product mix and supply-chain control to absorb rising memory costs better than rivals. Apple’s on-device AI strategy leverages proprietary M5 chips that deliver up to four times faster performance and 30% higher memory bandwidth, with EPS expected at $1.94 on $109.26 billion revenue next quarter.
1. BNP Paribas Upgrade
BNP Paribas raised Apple’s rating to Outperform from Neutral and set a $300 price target, noting that the company’s scale, premium product mix and tight control over its supply chain position it to better absorb rising memory component costs than competitors.
2. On-Device AI Strategy
Apple’s AI approach emphasizes on-device processing using proprietary chips rather than massive infrastructure builds. By running more AI tasks locally, it avoids the volatility tied to large-scale AI spending cycles experienced by cloud-focused peers.
3. M5 Chip Performance and Outlook
The new M5 chips deliver up to four times faster compute performance and a 30% increase in memory bandwidth over the previous generation. For the upcoming quarter, Apple anticipates EPS of $1.94 on revenue of $109.26 billion, while hinting at the M5 Ultra’s debut at the June WWDC.