Trump announces 100% chip tariff as Apple ups U.S. investment
On Tuesday, Raymond (NSE:RYMD) James reiterated its Outperform rating and $230.00 price target for Apple stock (NASDAQ:AAPL), currently trading at $201.45 with a market capitalization of $3.01 trillion, following the tech giant’s Worldwide Developers Conference (WWDC). According to InvestingPro, analyst consensus remains moderately bullish with price targets ranging from $170 to $300. At the event, Apple introduced a series of enhancements to its Apple Intelligence features, such as live language translation, ChatGPT-supported visual intelligence, and expanded language support. The new Foundation Models framework was also announced, enabling third-party applications to utilize on-device large language models (LLMs) to provide intelligent features even without an internet connection.
The focus of WWDC extended to operating system redesigns, featuring the new Liquid Glass UI and additional productivity tools. Despite the anticipation for a major Siri update, which has been postponed, Raymond James believes that Apple’s robust ecosystem, advanced hardware technology, and commitment to user privacy uniquely position the company to innovate with on-device AI capabilities. InvestingPro data shows Apple maintains a "GOOD" financial health score of 2.63, though it currently trades at elevated multiples with a P/E ratio of 31.27. The analyst highlighted that these AI advancements require less capital expenditure and could lead to quicker monetization through consumer hardware upgrades.
Apple’s iPhone 16 has reportedly been performing well in markets where Apple Intelligence features are available, signaling positive consumer response to the new AI capabilities. The analyst expressed optimism for sustained momentum as Apple continues to roll out new AI features and anticipates further acceleration with the eventual Siri update. Additionally, providing developers with greater access to on-device LLMs is expected to stimulate the creation of in-app AI features, potentially leading to an increase in Services revenue for Apple, which currently generates annual revenue of $400.37 billion with a 4.91% growth rate. Discover more detailed insights and 12 additional ProTips about Apple’s financial performance on InvestingPro.
In other recent news, Apple Inc. has made significant announcements that are capturing the attention of investors. The company unveiled a series of new developer tools and design enhancements, including a new design language called Liquid Glass and the Foundation Models framework, which offers on-device intelligence capabilities. These developments were highlighted at Apple’s Worldwide Developers Conference (WWDC), where the company also announced updates across its operating systems and enhancements to Apple Intelligence.
Various analyst firms have weighed in on Apple’s prospects following these announcements. Evercore ISI maintained an Outperform rating with a $250 price target, citing Apple’s strategy of continuous innovation. Wedbush also reiterated an Outperform rating, setting a price target of $270, while expressing confidence in Apple’s ability to navigate the AI landscape. BofA Securities reaffirmed their Buy rating and $235 price target, indicating confidence in Apple’s market position.
Conversely, Barclays (LON:BARC) maintained an Underweight rating with a $173 price target, expressing skepticism about the impact of the WWDC announcements. They noted the updates as incremental and unlikely to drive a new cycle of device upgrades. These diverse analyst perspectives highlight the varied expectations surrounding Apple’s future performance in the tech sector.
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