BofA flags potential shift in Apple's risk appetite under Ternus

BofA expects Apple's AAPL.O risk appetite to increase under John Ternus, set to take over the reins from Tim Cook on September 1, with potential for higher R&D spending, capex and larger acquisitions.

The iPhone maker's move away from its net-cash-neutral target could signal a period of elevated investment as AI accelerates the pace of innovation, analysts say.

BofA says Apple can leverage its silicon, on-device AI, privacy capabilities and installed base to strengthen its position in the artificial intelligence era.

The brokerage reiterates its "buy" rating on Apple, citing strong capital returns, AI-at-the-edge opportunities and growth opportunities from new products and markets.

BofA maintains a $380 price target, implying a nearly 20% upside to the stock's closing price.