10 AI Stocks on the Market’s Radar

3. Apple Inc. (NASDAQ:AAPL)

Number of Hedge Fund Holders: 166

Apple Inc. (NASDAQ:AAPL) is one of the 10 AI Stocks on the Market’s Radar. On December 17, Morgan Stanley raised its price target on the stock to $315.00 from $305.00 while maintaining an Overweight rating. The firm remains bullish on the stock, believing that potential upside outweighs the downside.

According to the firm, the new $315 price target reflects an “unchanged 32x multiple on our new FY27 EPS of $9.83 (up from $9.55).” Earnings expectations for FY27 were raised on higher revenue from price hikes, a slightly higher iPhone shipment forecast, despite lower gross margins and an unchanged opex trajectory.

Overall, the firm remains confident in Apple’s pricing power and AI investment payoff.

“3% upward revision to FY27 EPS is a function of (1) 130bps lower gross margin due to higher memory input costs, (2) 5% higher revenue to reflect price hikes due to commodity cost inflation, and a slightly higher iPhone shipment forecast assuming 0.1- year Y/Y replacement cycle elongation, and (3) a largely unchanged opex trajectory that is elevated vs. historical seasonality given incremental investments in AI. As such, we remain Overweight-rated with a 14% risk-adjusted risk/reward and a 1.6 bull-to-bear skew.”

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