10 AI Stocks on Analyst’s Radar Today

4. Apple Inc. (NASDAQ:AAPL)

Number of Hedge Fund Holders: 159

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.

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.