Wall Street Wavers on Apple: Analysts Split as Tariffs and AI Delay Cloud Outlook

Earlier this week, a prominent Wall Street analyst with a bullish stance on Apple Inc. adjusted their optimism towards the tech giant. On Thursday, an analyst from Bank of America reaffirmed their “buy” rating on Apple (AAPL) shares but lowered the target price by $10 to $240. This revision comes amid concerns over tariff-related costs that may squeeze profit margins and the delayed deployment of AI capabilities, possibly dampening device demand.

As the broader market rose, Apple shares experienced a slight uptick, climbing 0.6% to over $205. Apple's imminent earnings report, joining its tech giant counterparts, is scheduled for release next Thursday after market close. Bank of America anticipates that tariff-induced “buying in advance” behaviors may bolster sales in the recent quarter but is adjusting long-term sales forecasts to reflect anticipated higher costs stemming from a more complex supply chain and the delayed introduction of AI-supported functionalities like Siri.

This year, Apple shares have declined approximately 18%, underperforming the benchmark S&P 500 index. Notably, individual investors have recently been net sellers of Apple stock, even while continuing to net buy stocks such as Tesla and Nvidia.

Meanwhile, Craig Moffett, an analyst, reiterated his “sell” rating on Apple and significantly reduced his target price from $184 to $141 earlier this week. Despite Apple's shares closing Monday at $193.16, Moffett's projection suggests a potential downside of 27%. He attributed the downward revision to ongoing tariff implications and an escalating trade war, though he made slight upward adjustments in his near-term earnings estimates for fiscal 2025. This minor adjustment reflects anticipations of consumer preemptive buying to counter tariff impacts, an effect he believes will not persist for long.