Apple (AAPL) stocks received a 'Buy' upgrade from HSBC with a price target raised to $366 from $260, while the iPhone-maker sent legal letters to around 40 former employees now working at OpenAI. The upgrade cited Apple's AI strategy, modest capital spending, and upcoming hardware launches, while the legal outreach expands Apple's trade-secrets investigation following a lawsuit filed last week. The lawsuit accuses OpenAI of recruiting key engineers to obtain confidential hardware and product-development information. This development occurs as approximately 400 former Apple employees now work at OpenAI, intensifying competition in the AI hardware space.
Apple shares traded flat in pre-market trade on Friday, with retail sentiment trending in the 'bullish' zone accompanied by 'high' levels of chatter. Platform data showed an over 10% rise in message volume in the last 24 hours, and an over 300% jump over the past week. The stock has gained over 20% this year and rallied nearly 60% in the last 12 months.
HSBC Upgrades Apple Stock to $366 Price Target
HSBC upgraded Apple to 'Buy' from 'Hold' with a price target of $366, up from $260. The new price target implies a potential upside of around 10% from Thursday's closing price of over $333. The firm said that Apple is now at an "operational turning point," noting the company can stay away from high capital expenditure as it invests only 2.5% of its 2026 sales versus 39% for hyperscalers.
HSBC noted that Apple is well positioned to leverage its 2.5 billion installed device base with its forthcoming revamped Apple Intelligence. The firm wrote that the "AI boost comes at the right moment, when we think Apple has one of its most innovative product pipelines in place." HSBC views Apple's hardware pipeline as strong, which includes the iPhone 18 Pro and Pro Max this fall, an iPhone Air in April 2027, and a book-style foldable phone.
Apple Sends Legal Letters to 40 Former Employees at OpenAI
A Financial Times report said Apple sent legal letters to around 40 former employees now working at OpenAI. That is roughly 10% of the 400 former Apple employees now working at OpenAI. The letters direct them to preserve documents and communications and demand meetings with Apple's lawyers.
The reported outreach follows Apple's lawsuit filed last week against OpenAI. The company alleged that there was a coordinated effort to obtain confidential information related to its hardware engineering and product development, calling its initial discoveries "the tip of the iceberg." In its lawsuit, Apple stated that OpenAI recruited key engineers, including former executives Tang Tan and Chang Liu, in order to benefit from the company's proprietary designs, manufacturing processes, and other trade secrets.
Tan is OpenAI's Chief Hardware Officer and a 24-year Apple veteran who led product design, while Liu is on OpenAI's hardware team after working as a senior system electrical engineer at Apple.
OpenAI Denies Apple Trade Secret Allegations
Earlier this week, OpenAI told Bloomberg that it's "not aware of any evidence" that gives Apple's lawsuit alleging trade-secret theft merit. "While we take these allegations seriously, we're not aware of any evidence that this complaint has merit," OpenAI said in the statement. "We believe in fair competition and allowing people the freedom to work wherever they choose, and we're focused on building innovative technology that empowers people everywhere."
FAQ
What did HSBC announce about Apple stocks?
HSBC upgraded Apple to 'Buy' from 'Hold' and raised its price target to $366 from $260, citing Apple's AI strategy, modest capital spending of 2.5% of 2026 sales, and upcoming hardware launches including the iPhone 18 Pro and Pro Max this fall and an iPhone Air in April 2027.
Why did Apple send legal letters to former employees at OpenAI?
Apple sent legal letters to around 40 former employees now working at OpenAI, directing them to preserve documents and communications and demanding meetings with Apple's lawyers. This follows Apple's lawsuit filed last week accusing OpenAI of recruiting key engineers like Tang Tan and Chang Liu to obtain confidential hardware and product-development information.
How did OpenAI respond to Apple's trade secret allegations?
Earlier this week, OpenAI told Bloomberg that it's "not aware of any evidence" that gives Apple's lawsuit merit, stating "we believe in fair competition and allowing people the freedom to work wherever they choose."
