Bernstein raises Apple stock price target to $380 on AI potential

Investment firm Bernstein upgraded its price target for Apple Inc. (NASDAQ:AAPL) to $380 from $370, while keeping an Outperform rating. The firm highlighted Apple's role as a conduit to artificial intelligence (AI) and noted ongoing increases in smartphone and PC market share. Apple's stock currently trades at $331.90, with a price-to-earnings ratio of 37.96.

Despite this, InvestingPro data indicates the shares are overvalued compared to the firm's Fair Value estimate. The company revised its fiscal 2027 and 2028 earnings per share (EPS) estimates downward by roughly 1%, to $9.78 and $11.13 respectively, after Apple's latest quarterly earnings. However, the 2029 EPS estimate remained steady at $12.43.

Bernstein also escalated revenue projections by 2%, driven by positive guidance and the strategic rollout of new iPhone models, though this was somewhat tempered by lower gross margins and escalated research and development expenses. These revised estimates now exceed the average analyst expectation for fiscal 2028 and 2029 by 7-8%.

Shares are projected to be repurchased, helping to mitigate some of the negative impact on net income in the coming years. Despite these valuation concerns, Apple holds a perfect Piotroski Score of 9, signaling robust financial health—this is one of over 15 insights provided by InvestingPro. Analysts continue to acknowledge Apple's leadership in smartphones and PCs, even amidst a challenging market characterized by escalating memory costs.

The firm believes AI will present a new growth avenue for Apple, but this potential is expected to unfold over a longer timeline. Meanwhile, Apple's fourth quarter fiscal 2026 results exhibited sustained iPhone upgrades and robust Mac sales, although services growth did not meet projections. The company anticipates revenue expansion of 7% to 10% year-over-year in its upcoming fiscal quarter, outpacing the Street's 5.8% estimate, despite hurdles in services growth due to foreign exchange and other variables.

Evercore ISI reaffirmed its Outperform rating, pointing to a substantial rise in manufacturing purchase commitments, particularly in relation to memory acquisition. DA Davidson raised its price target for Apple to $295 from $270, maintaining a Neutral rating. JPMorgan modestly reduced its price target to $355 from $360, citing apprehensions about services revenue growth and gross margins.

In comparison, Aletheia Capital retained a Sell rating with a $250 price target, expressing worries about profitless growth in fiscal 2027. Wedbush continues to back Apple with an Outperform rating and a $400 price target, underscoring the strength of iPhone sales. These contrasting assessments underscore a spectrum of opinions among analysts concerning Apple's future trajectory.