Meta Outpaces Apple in Analyst Upside Predictions
Analysts at BofA Securities have reaffirmed their Buy ratings on tech giants Apple (AAPL) and Meta Platforms (META), but see greater upside potential in Meta.
BofA's Wamsi Mohan and Justin Post, both five-star analysts with a high success rate, believe that Meta has more room for growth. Post estimates that Meta could reach $810, implying 20.3% upside, while Mohan has a price target of $370 on Apple, indicating 11.3% upside.
Post highlighted the benefits of Meta's investment in custom AI chips, which he believes will reduce the company's long-term AI infrastructure costs and improve returns on capital spending. He estimates that these custom chips could generate about $8.5 billion in cost savings if Meta deploys 5-6 GW of owned capacity in 2027.
On the other hand, Mohan points to stronger wireless carrier promotions as a potential tailwind for iPhone demand. He notes that U.S. carriers are offering higher maximum trade-in credits for the latest iPhone models, which could largely offset Apple's higher pricing this year.