HSBC has upgraded Apple to Buy, setting a price target of $366. The move comes as the bank bets on AI-driven momentum to fuel a 21% jump in iPhone sales by 2026.
Why the upgrade
The upgrade is rooted in Apple's growing artificial intelligence push. HSBC analysts see AI features as a catalyst that will drive a significant upgrade cycle for iPhones, with sales growth accelerating to 21% in fiscal 2026. The bank also highlighted Apple's robust hardware pipeline as an operational factor supporting the bullish view.
A 21% sales forecast
The 21% growth figure stands out. It's a forward-looking projection that suggests HSBC expects Apple's AI capabilities to resonate with consumers in a way that sparks a wave of device replacements. The bank didn't specify which AI features it expects to drive that demand, but the broader industry has been eyeing on-device AI as a key selling point for future iPhones.
Hardware pipeline as a tailwind
Beyond the AI story, HSBC pointed to Apple's hardware pipeline. The company has been rumored to be working on new form factors and silicon improvements, though the bank didn't detail specific products. For HSBC, the combination of AI software and upgraded hardware creates a strong setup for earnings growth.
Apple shares have already seen gains this year, but the HSBC upgrade adds another vote of confidence from a major bank. The $366 target implies roughly 15% upside from current levels. Investors will now watch for Apple's next product event, expected later this year, to see if the AI features and hardware updates can deliver on the growth HSBC anticipates.
