Phillip Securities Downgrades Apple Stock Target Amid AI-Driven Memory Chip Shortage

Apple's recent surge has been halted by Phillip Securities' decision to lower its stock price target for Apple (AAPL) to $290, while issuing a 'sell' signal. This move comes as the company faces challenges from rising memory chip prices amid supply shortages and uncertainties around Apple Intelligence features.

The AI boom has redirected a large portion of memory chips away from consumer electronics and into AI computation, leading to price hikes for several companies, including Apple. This development is expected to negatively impact Apple's sales.

Additionally, the emphasis on Apple Intelligence features may be running its course, with users not being as excited about these features as initially anticipated. The criticism surrounding increased AI spending from various companies also raises concerns about sustainability.