Apple stock downgraded by Jefferies, which says 'serious AI' smartphones are 2 years away
Published On Oct 7, 2024, 11:58 AM
Jefferies analyst Edison Lee has downgraded Apple Inc. (AAPL) from a Buy rating to Hold, highlighting concerns that expectations for the new AI-enabled iPhones are too high. He emphasized that the current smartphone hardware is not sufficiently advanced to support the AI capabilities that consumers and analysts are hoping for. Lee predicts it will take two to three years for manufacturers to come up with hardware ready for the integration of such advanced AI technologies. Following the downgrade, AAPL stock dipped by 0.8%. Despite this, Lee believes Apple is well-positioned to lead in mobile AI technology in the future, owing to its unique hardware-software integration.
Stock Forecasts
AAPL
Negative
Given the downgrade and the analyst's concerns about high unrealistic expectations for Apple’s upcoming iPhones, it is likely that AAPL stock may see a decline as investors may reassess their positions in light of these insights.
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