HSBC Upgrades Apple to Buy with $366 Price Target Ahead of July 30 Earnings

HSBC upgraded Apple to buy from hold on Thursday, raising its price target to $366 from $260, according to analyst Nicolas Cote-Colisson. The bank expects Apple Intelligence and the next-generation AI Siri to drive a new upgrade cycle, positioning the company to challenge a $5 trillion market cap. HSBC highlighted Apple's "light-asset AI model" advantage, as the company can deploy on-device AI features with just 2.5% of revenue allocated to capital expenditure in 2026, compared to heavy infrastructure investments by Microsoft, Alphabet, Amazon, and Meta.

However, bearish analysts warned the stock may have overheated. KeyBanc downgraded Apple to underperform with a $250 price target, citing 20% downside risk. The firm flagged Apple's P/E multiple of 35-36 times, well above the S&P 500 average of 20 times, and warned that disappointing earnings or AI adoption could trigger sharp correction.