Ghazal Ahmed
2 min read
In This Article:
We recently published a list of 10 AI Stocks on Analyst’s Radar Today. In this article, we are going to take a look at where Apple Inc. (NASDAQ:AAPL) stands against other AI stocks that are on analyst’s radar today.
One of the most notable analyst calls on Tuesday, May 27, was for Apple Inc. (NASDAQ:AAPL). Apple is a technology company known for its consumer electronics, particularly the iPhones and MacBooks.
Morgan Stanley analyst Erik Woodring reiterated an “Overweight” rating on the stock with a $235.00 price target.
As per the analysts, a 25% tariff on the iPhones imported into the United States is not likely to drive the company to reshore its production.
“While ‘time to market’ of a U.S.-produced iPhone is one major impediment, our math says a 25% tariff on iPhone imports isn’t enough incentive for Apple to reshore U.S.-bound iPhone production.”
Moreover, they believe that building iPhone assembly plants in the US is likely to take “a minimum of 2+ years, and several billions.”
Tariff concerns were reignited last week when US President Donald Trump threatened Apple and other smartphone makers with a 25% tariff if they don’t manufacture their phones in the United States.
A wide view of an Apple store, showing the range of products the company offers.
However, Morgan Stanley stated that the economics still favor overseas manufacturing.
“A U.S.-produced iPhone would be 35% more expensive than a China/India-produced iPhone, much more than the 4-6% price hike needed to offset a 25% import tariff.”
However, Apple’s defiance may come at a certain cost.
“CEO Tim Cook’s status with the current administration deteriorates from here. Is a 50% tariff enough to shift production to the U.S.?”
Albeit the pressure, the firm also hinted at how Apple could neutralize the threat with further U.S. investment. This will be part of its previously announced $500 billion commitment.
Overall, AAPL ranks 4th on our list of AI stocks that are on analyst’s radar today. While we acknowledge the potential of AAPL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than AAPL and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
