Apple stock gets a shocking Wall Street price target on strong AI cycle ahead

Wall Street Giant HSBC Makes Bullish Apple Bet on AI and New iPhones

This article first appeared on GuruFocus. Apple (NASDAQ:AAPL) shares edged higher Friday after HSBC upgraded the iPhone maker to Buy from Hold and raised its price target to $366 from $260, citing improving growth prospects tied to artificial intelligence and upcoming product launches. HSBC said Apple appears to be entering an operational inflection point as it prepares to expand Apple Intelligence across its installed base of about 2.5 billion devices.

The brokerage added that Apple's relatively modest capital spending compared with major cloud providers could support investor sentiment as AI investment trends evolve. The firm also pointed to Apple's upcoming hardware roadmap, including the expected launch of the iPhone 18 Pro and Pro Max later this year, a thinner iPhone model in 2027 and a foldable iPhone under development. HSBC said these products, together with AI enhancements, could encourage a broader device replacement cycle.

HSBC increased its revenue forecasts for fiscal 2027 and 2028 by 7% to 9%, driven by stronger iPhone demand. The brokerage also raised its 2027 services revenue estimate by 5.4%, reflecting expectations for broader adoption of Apple's AI-powered ecosystem.