AI-Driven iPhone 16 Expected to Boost Apple Sales
Wedbush analysts suggest Apple's upcoming AI-driven iPhone 16 launch, expected in September, may trigger a major growth phase—referred to as a "supercycle"—for the tech giant. Initial shipments could exceed 90 million units, surpassing market expectations and reflecting a double-digit year-over-year increase. Analysts estimate that around 300 million iPhones have not been upgraded in over four years, setting the stage for significant sales of over 240 million units in fiscal 2025. China remains a crucial market for Apple's growth as the company anticipates a "golden upgrade cycle."
Dell Technologies Named Top Pick by JPMorgan
JPMorgan has upgraded Dell Technologies to its "Top Pick," citing substantial growth potential in the AI server market and traditional infrastructure sectors. With an Overweight rating and a price target of $160 by December 2025, analysts believe Dell's lagging stock performance is due to overblown concerns about AI server margins. As customer adoption escalates, particularly among smaller cloud and enterprise companies, profit margins are expected to grow, enhancing Dell's market position.
Qualcomm Faces Downgrade Amid Apple's Modem Development
Wolfe Research downgraded Qualcomm to Peer Perform, removing its price target amidst concerns over Apple's internal modem development. This advancement could significantly impact Qualcomm's revenue, with estimates suggesting a potential $4 billion revenue hit between 2024 and 2026. Despite efforts to diversify into AI handsets and IoT, Wolfe Research remains cautious about Qualcomm's ability to maintain investor interest.
Snowflake Downgraded by Wells Fargo
Wells Fargo downgraded Snowflake from Overweight to Equal Weight, reducing its price target from $200 to $130. Analysts cite challenges such as new management, increasing competition, and a recent data breach as factors affecting the company’s outlook. The downgrade precedes Snowflake's Q2 earnings report, highlighting potential "near-term air pocket on top-line growth" due to modest growth projections and customer churn.
Taiwan's Vulnerability to AI Trade Reversal
Societe Generale has identified Taiwan's stock market as highly vulnerable to a reversal in the AI trade, particularly in the semiconductor sector. Significant foreign ownership and recent net selling trends have increased market sensitivity. Comments from former U.S. President Donald Trump and global equity sell-offs have compounded challenges, with domestic support lacking as local dealers continue to sell off shares.
This week's analyst moves underscore the dynamic and evolving landscape of AI-related investments, highlighting both potential opportunities and risks for investors.
