Apple Stock Outlook Bright! Shares Surge Nearly 20% Over 15 Days; Analyst Upgrades to Buy and Raises Target Price

Apple (AAPL-US) shares have surged recently with a momentum not seen in six years, now gaining confidence from a key analyst.

According to MarketWatch, HSBC analyst Nicolas Cote-Colisson stated that Apple's stock has a positive outlook. The tech giant, once viewed as lagging in artificial intelligence (AI), has now earned his respect for its position within the AI ecosystem.

Cote-Colisson upgraded Apple’s rating from 'Hold' to 'Buy' on Friday (17th), raising the target price from $260 to $366, implying approximately 10% upside potential.

He highlighted that Apple’s 'strong product pipeline' and AI capabilities will drive revenue growth in its hardware business.

Cote-Colisson noted that while hyperscale cloud providers spend capital expenditures (capex) equal to an estimated 39% of their revenue, Apple’s capex represents only 2.5% of estimated revenue, allowing it to 'remain distant from the high-capex debate.'

Meanwhile, Apple can leverage its massive base of 2.5 billion active devices as it rolls out its Apple Intelligence service.

Cote-Colisson said: 'The benefits from this AI wave are arriving at just the right time. We believe Apple currently has one of the most innovative product lines in its history.'

Apple’s influence is also spreading across the entire AI supply chain. BNP Paribas analyst Karl Ackerman noted in a report on Thursday (16th) that Apple suppliers are seeing revenue performance significantly exceeding their originally expected growth for this period.

He attributed this mainly to strong consumer demand for high-end flagship smartphones and potential price increases.

Apple’s stock was largely flat on Friday’s trading. Over the past 15 trading days, Apple shares have risen 19.98%, compared to the S&P 500’s gain of just 1.91%.

According to Dow Jones Market Data, Apple is on track to record its largest 15-day outperformance of the S&P 500 since August 20, 2020. At that time, Apple’s performance exceeded the S&P 500 by 18.67 percentage points.