Morgan Stanley ‘getting more bullish’ on Apple’s ‘edge AI’ opportunity

Morgan Stanley analyst Erik Woodring believes Apple shares are oversold after underperformance versus the S&P 500 in the last month and would be buyers of the stock on the weakness. While acknowledging that near-term product demand “remains uneven,” the firm believes this is captured in recent underperformance and “more importantly” it believes Apple is accelerating its generative AI efforts. The firm, which says an LLM-enabled OS and iPhone is “likely closer than expected,” reiterates an Overweight rating and $220 price target on Apple shares.