Apple NASDAQ:AAPL was upgraded to Buy at HSBC, with the firm arguing that a stronger product pipeline and revamped Apple Intelligence could set up a major upgrade cycle.
Analyst Nicolas Cote-Colisson raised his price target to $366 from $260. He pointed to Apple's relatively light AI spending, with capex equal to just 2.5% of estimated 2026 sales versus roughly 39% for hyperscalers, while the company can still monetize its 2.5 billion-device installed base.
Apple makes the iPhone, Mac, iPad and wearables, while its Services business includes the App Store, iCloud and subscriptions. That ecosystem gives it a large captive audience for new AI features and hardware.
HSBC expects iPhone revenue to grow between 11% and 13%, supported by the iPhone 18 Pro lineup, an iPhone Air, a foldable device, smart glasses and a 20th-anniversary iPhone in 2027. The firm also raised its 2027 Services estimate by 5.4%.