HSBC upgrades Apple to 'buy'
AAPL•Risks and market position
- 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.
