Trump announces 100% chip tariff as Apple ups U.S. investment
On Tuesday, Evercore ISI reiterated its positive stance on Apple Inc. (NASDAQ:AAPL) shares, maintaining an Outperform rating and a $250.00 price target. With Apple currently trading at $201.45 and analyst targets ranging from $170 to $300, the stock appears overvalued according to InvestingPro Fair Value metrics. The affirmation follows a recent Apple keynote that aligned with Evercore ISI’s predictions of a "transition year" for the tech giant, featuring incremental rather than groundbreaking updates.
In the keynote, Apple revealed that it would open up its foundational AI models, which support Apple Intelligence, to developers. This move allows developers to integrate AI features into their apps that can function independently of an internet connection. The tech giant, which generated $400.37 billion in revenue over the last twelve months with an impressive 46.6% gross margin, continues to leverage its strong financial position to invest in innovation. The company also introduced advancements in Visual Intelligence and a live translate feature that will be incorporated into various apps, including Messages, Phone, and Facetime, and made accessible to developers through an API.
Additionally, Apple announced the introduction of ’Liquid Glass’ technology and updated nomenclature for its operating systems. iOS 26 will see visual enhancements inspired by VisionOS, while iPadOS is set to receive updates that enhance multitasking capabilities, further narrowing the gap between it and MacOS. The Apple Watch will also see new features with the addition of a ’Workout Buddy,’ aimed at bolstering its position as a leading fitness device.
The analyst noted that the announcements met their expectations and likely did not alter the investment community’s perception of Apple’s stock. The focus on AI and integration across Apple’s ecosystem underscores the company’s strategy of continuous, albeit measured, innovation and improvement. For deeper insights into Apple’s AI strategy and comprehensive financial analysis, including 12 additional ProTips and detailed valuation metrics, visit InvestingPro, where you’ll find our exclusive Pro Research Report covering what really matters about this tech giant.
In other recent news, Apple Inc. has introduced a suite of new developer tools and on-device AI features aimed at enhancing user experiences across its devices. These advancements include a new design language called Liquid Glass and the Foundation Models framework, which enables developers to integrate AI capabilities into their apps while maintaining user privacy. During Apple’s Worldwide Developers Conference (WWDC), updates to all operating systems were showcased, including enhancements to Apple Intelligence, though analysts noted these were incremental. Wedbush analysts maintained an Outperform rating with a $270 price target, expressing confidence in Apple’s AI strategy, while BofA Securities reiterated a Buy rating with a $235 price target, signaling continued faith in Apple’s market position. Conversely, Barclays (LON:BARC) maintained an Underweight rating with a $173 target, expressing skepticism about the impact of the WWDC announcements on Apple’s growth prospects. The new developer tools, including Xcode 26 and Swift 6.2, offer features like ChatGPT support and improved game development capabilities. Apple’s announcement of these tools and features highlights its ongoing commitment to innovation and privacy, with public beta testing expected next month.
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