JPMorgan Raises Apple PT to $250, Keeps 'Overweight' Rating

JPMorgan has raised its price target on Apple (AAPL) to $250 per share, keeping its "Overweight" rating. The move comes as Meta poaches Apple's top AI executive and two of his subordinates. Meta has been investing heavily in AI to keep up with advancements from tech giants like OpenAI and Google.

In a significant move, JPMorgan has increased its price target for Apple (AAPL) to $250 per share, maintaining its "Overweight" rating. This adjustment reflects the investment bank's expectations of substantial growth in cloud spending, which could bolster Apple's performance in the latter half of 2025 [1].

The revised target comes amidst a broader wave of analyst optimism for Apple. The company reported strong financial results for the March quarter, with revenue reaching $95.4 billion, a 5% year-over-year increase. Diluted earnings per share (EPS) also rose to $1.65, up 8% year-over-year. The iPhone 16 family contributed significantly to this growth, with a robust active installed base [1].

Apple's Services segment achieved an all-time revenue record of $26.6 billion, growing 12% compared to the prior year. The company also announced plans to invest $500 billion in the US over the next four years, expanding facilities and sourcing more components domestically [1].

However, the company faces challenges, including a potential $900 million cost impact from tariffs in the June quarter, a decline in Wearables, Home, and Accessories revenue by 5% year-over-year, and ongoing legal challenges. Despite these headwinds, JP Morgan remains optimistic about Apple's long-term prospects [1].

The average one-year price target for Apple, as offered by 41 analysts, is $231.40, with a high estimate of $300.00 and a low estimate of $139.00. The consensus recommendation from 50 brokerage firms is currently 2.2, indicating an "Outperform" status [1].

Meanwhile, Meta Platforms Inc. has been actively recruiting key AI talent from Apple. The social networking giant hired Mark Lee and Tom Gunter for its Superintelligence Labs team, shortly after poaching their former boss from the iPhone maker. Meta has been investing heavily in AI to keep up with advancements from tech giants like OpenAI and Google [2].

These moves reflect the continuing turmoil at the Apple Foundation Models team, which develops the technology underpinning generative AI. The company’s top AI executives are considering using outside models to power the Siri voice assistant and other Apple Intelligence features [2].

References:
[1] https://www.ainvest.com/news/apple-jp-morgan-raises-pt-250-maintains-overweight-rating-2507/
[2] https://finance.yahoo.com/news/meta-hires-two-key-apple-233736522.html