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Investing.com - Evercore ISI has reiterated an Outperform rating and $250.00 price target on Apple (NASDAQ:AAPL), currently trading at $209.95, following the departure of a key artificial intelligence executive. According to InvestingPro data, the stock is currently trading below analysts’ high target of $300.
Bloomberg reported that Ruoming Pang, who has led Apple’s foundational models team since joining from Google (NASDAQ:GOOGL) in 2021, has left the company to join Meta (NASDAQ:META). Pang oversaw a 100-person team responsible for developing large language models (LLMs) that power Apple Intelligence and other AI features.
The departure comes amid leadership changes in Apple’s AI division, which has been under the direction of Mike Rockwell since April. Rockwell, who previously led development of Vision Pro software, has been restructuring the AI leadership team while the company explores third-party models for Siri.
According to Evercore ISI, the leadership overhaul reportedly affected team morale and contributed to Pang’s exit, though the firm believes compensation in the "tens of millions" annually was likely the primary factor in his decision to leave.
Evercore ISI characterized Apple’s approach to AI as "prudently flexible and cost conscious," noting this strategy "preserves capital and optionality" for various monetization opportunities, potentially including revenue-sharing arrangements similar to its existing deal with Google for search. For deeper insights into Apple’s financial health and growth prospects, including exclusive ProTips and comprehensive valuation metrics, visit InvestingPro.
In other recent news, Apple has been at the center of several key developments. Jefferies has upgraded Apple’s stock rating from Underperform to Hold, raising its price target to $188.32. The firm expects Apple to exceed consensus estimates in the June quarter, projecting revenue growth of about 8% and earnings per share growth of approximately 10%. Meanwhile, Goldman Sachs has maintained its Buy rating and $253.00 price target on Apple despite challenges in China, where foreign-branded phone shipments, including Apple’s, have faced a decline. In legal matters, Apple has filed an appeal against a $587 million fine imposed by the European Union for allegedly breaching the Digital Markets Act. The company argues that the fine exceeds legal requirements and plans to present its case in court. UBS has reiterated a Neutral rating on Apple, noting that despite a new US-Vietnam trade deal, China’s significance in Apple’s supply chain remains dominant. These developments reflect the complex landscape Apple navigates amid market shifts and regulatory challenges.
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