.August 19, 2024 5:33:00 PM

Investment firm MoffettNathanson believes Apple (NASDAQ:AAPL) is well-positioned in the AI industry, but has already factored this potential into the stock price. They initiated coverage with a Neutral rating and a $211 price target, citing the market’s anticipation of Apple’s AI strategy.

Despite concerns about Apple lagging in AI, the market has shown confidence in the company’s approach, especially after WWDC where Apple outlined its AI roadmap. MoffettNathanson highlighted Apple’s focus on user data privacy and “contextual awareness” as key strengths.

Apple’s strategy of leveraging its massive user base for AI development, particularly in handling sensitive data, has been well-received. MoffettNathanson noted that while AI efforts could drive iPhone upgrades, the stock price already reflects this potential growth.