MoffettNathanson says Apple is seen as a "safe haven" from "anti-AI" sentiment

Investing.com - According to a report by MoffettNathanson, investors are increasingly viewing Apple (NASDAQ:AAPL) as a “counter-AI” large-cap stock, serving as a relative safe haven amid fluctuations related to AI spending.

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While other members of the Big Seven U.S. stocks fluctuate with changing sentiment around AI infrastructure returns and capital expenditures, Apple’s trading performance remains more defensive. The company is not seen as a direct winner or loser of AI but as a source of stability when risk appetite wanes.

MoffettNathanson has raised Apple’s target price from $241 to $270, maintaining a “Neutral” rating. The higher target reflects stronger-than-expected demand for the iPhone 17, including record-breaking upgrades and growth in converting users, especially in Greater China.

Analysts believe the earlier narrative of Apple as a primary beneficiary of AI has faded, which was driven by expectations of an AI-driven iPhone supercycle and potential subscription revenue. Instead, Apple is once again mainly viewed as a top-tier hardware company with a robust services ecosystem.

The report also notes that Apple’s performance in China is improving, indicating that despite pressures from domestic OEMs, Apple’s competitive position is more resilient than previously feared.

Short-term resistance remains, including memory cost pressures and changing tariff policies. However, the firm considers these as profit variables rather than structural threats to Apple’s long-term valuation. Nonetheless, since the stock price has already reflected a strong product cycle, the broker believes there is limited room for further valuation multiple expansion at current levels.

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