HSBC said key risks include new AI hardware competition and a prolonged chip shortage, though Apple's strong pricing power should help protect its margins.
AAPL had a market cap of $4.92 trillion in premarket trading, set to overtake Nvidia's $4.86 trillion to become the world's most valuable company if gains hold.
32 of 48 brokerages rate the stock buy or higher, 13 hold and 3 sell; their median price target is $327, according to LSEG-compiled data.
As of the prior day's close, the stock was up 22.58% year to date.
HSBC raises rating and price target
Shares of Apple (AAPL) rose 0.73% to $335.69 in premarket trading.
HSBC upgraded Apple to buy from neutral and raised its price target to $366 from $260, representing about 10% upside to the stock's last close.
The brokerage said Apple's robust product pipeline and enhanced AI capabilities are expected to drive growth in hardware revenue.
HSBC also expects new AI features to drive growth in Apple's higher-margin services segment.
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