Apple (AAPL) Downgraded as Analysts See No Significant AI Innovation

Apple Inc. (NASDAQ:AAPL) is one of the AI Stocks Analysts Say You Should Watch Closely. On September 11, Phillip Securities analyst Helena Wang downgraded the stock from Neutral to Reduce with a price target of $200.00.

The rating downgrade comes amid a stretched valuation and near-term headwinds which overshadow the impact of the company’s latest product launches. The firm said that it maintains a cautious outlook in the stock due to near-term tariff headwinds, elevated CAPEX, and lack of significant AI innovation.

“Our valuations remain unchanged. Our DCF target price remains unchanged at US$200, with a WACC of 6.5% and a terminal growth rate of 3%. We downgrade our recommendation from NEUTRAL to REDUCE due to the recent share price rally. We maintain a cautious outlook on Apple, due to near-term headwinds from tariffs, elevated CAPEX, and no significant AI innovation to help with persistent weakness in products and the China market.”

Apple is a technology company known for its consumer electronics, software, and services.

While we acknowledge the potential of AAPL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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