Morgan Stanley Trims Apple Price Target Amid AI Concerns

Apple's stock traded lower on Thursday after Morgan Stanley trimmed its price target for the company. The brokerage firm lowered its price target to $355 from $360 while maintaining an Overweight rating.

The stock was trading at $330 per share, down about 0.8% compared to a 0.13% decline in the S&P 500. The Nasdaq was nearly flat, down about 0.015%.

Morgan Stanley said agentic AI represented both 'a potential emerging risk' and an opportunity for Apple. The firm noted that Apple's product roadmap remains among the most exciting in more than a decade, but its earnings outlook changed little following the latest iPhone launch.

Needham also reiterated a Hold rating on Apple, citing competitive threats from Meta Platforms and other AI-focused companies. Analyst Laura Martin said the biggest investment risk for Apple shareholders would be Meta or another AI-first company developing an AI-agent, hardware and monetization stack capable of disintermediating the iPhone.