Apple stock (NASDAQ: AAPL) opened Friday at $321 after a 1.30% decline. Tech stocks face pressure over rising AI capital expenditure. Alphabet fell nearly 7% despite strong Q2 earnings after announcing a capex increase from $180 billion to $205 billion in 2026. Morgan Stanley reiterated a buy rating on Apple, raising its price target to $364 from $360. Analyst Eerik Woodring added $4 to the prediction, estimating a potential 13% return on investment. A $1,000 stake could grow to $1,130 if the target is met. The Magnificent Seven remain in focus as AI spending intensifies.
Apple stock (NASDAQ: AAPL) opened Friday’s trading session at $321 after falling 1.30% the previous trading session. Tech stocks are under the radar due to increased capital expenditure on building their AI infrastructure.
Even Alphabet, which published strong Q2 revenues in its earnings call, fell nearly 7% after the company announced it would increase its capex on AI from $180 billion to $205 billion in 2026. This led to a sell-off in Google stock, resulting in a slump despite robust earnings.
On the heels of the tech sector being under scrutiny from Wall Street giants, leading global investment bank Morgan Stanley has reiterated its buy rating on Apple stock. The banking firm briefly hiked its price target for AAPL, indicating that the equity has upward steam.
This makes the mobile phone maker a must-watch asset, as the financial firm remains confident in its prospects. The Magnificent Seven firms have been on the frontline of advancements, and this time the focus remains on AI.
Eerik Woodring, the Managing Director and Equity Research analyst at Morgan Stanley, gave Apple stock a price target of $364. The analyst briefly hiked the target from the previous number of $360.
Woodring added $4 to the price prediction, estimating AAPL to be a step higher than the previous rating. That is also a profit of $43 per share if traders take an entry position today at $321.
Morgan Stanley predicts that Apple stock could deliver an uptick and return on investment (ROI) of approximately 13%. Therefore, an investment of $1,000 in AAPL could turn into $1,130 if the target is met.
This is stellar gains, as not many assets in the market can deliver double-digit gains. Keeping AAPL in your watchlist could prove to be beneficial if you take an entry position at the right time.
