Apple (AAPL) Stock Rated Hold as HSBC Flags AI Letdown and Tariff Risks

Apple Inc. (NASDAQ:AAPL) is one of the AI Stocks on Analysts’ Radar Right NowOn July 18, HSBC maintained a “Hold” rating on the stock with a $220 price target. The firm has quoted a “5% regulatory discount” and warned that tariff and legal uncertainties may limit near-term upside.

HBSC analysts claim that Apple’s AI efforts for driving hardware upgrades through artificial intelligence have been falling short. Therefore, it needs a more compelling AI experience to revive AI sales.

“The iPhone still represents about half of Apple’s sales,” HSBC wrote. But “initial hopes that AI would accelerate the renewal cycle have been short-lived.”

According to the bank, Apple Intelligence has “so far failed to trigger significant improvement in user experience.”

A delayed AI-powered Siri implies users may be delaying iPhone upgrades, which is why the company is relying on hardware upgrades to boost demand.

“Better specs with iPhone 17 in September should entertain the demand, in-line with what has been seen with the iPhone 16.”

Apple (AAPL) Stock Rated Hold as HSBC Flags AI Letdown and Tariff Risks

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Tariffs are also a major concern for the company. The firm believes that the company “cannot re-localise production fast enough to avoid U.S. tariff hikes.”

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

While we acknowledge the risk and potential of AAPL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AAPL and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 10 AI Stocks on Wall Street’s Radar and 10 AI Stocks Analysts Are Tracking Closely.

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