Analyst Moves on AI‑Related Stocks

Jefferies downgraded Apple Inc. to Underperform from Hold, reducing its price target from $285.56 to $263.66 after supply‑chain checks revealed that Apple has cancelled the planned 20th‑anniversary all‑glass iPhone, originally slated for a September 2027 launch with a blended retail ASP of $2,060. The cancellation led Jefferies to lower its projected compound annual growth rate (CAGR) for iPhone ASP from 9.0% to 6.8% for fiscal 2026‑2031 and trim fiscal 2028 and 2029 EPS estimates by 2.1% and 3.4%, respectively. Analysts led by Edison Lee noted that the foldable iPhone remains the only key driver of higher ASP and margin, forecasting a starting price of $2,199 for the 256 GB iPhone 18 Fold and $3,099 for the 2 TB model, with an estimated 14 million units sold in fiscal 2028. Jefferies also indicated Apple plans to increase DRAM in the iPhone 19 Pro Max to 16 GB from 12 GB, adding $60‑70 to the bill of materials, and warned that a further rise in memory prices in fiscal 2027 could cause the upgrade to be abandoned.

KB Securities analyst Jeff Kim labeled Samsung Electronics Co Ltd and SK Hynix Inc. as "extremely undervalued" after both stocks pulled back from prior peaks. Based on the Wednesday close, Samsung trades at 3.7× 2027 estimated P/E and SK Hynix at 3.2×, while 2027 operating profit is forecast at 575 trillion won for Samsung and 389 trillion won for SK Hynix—13.2× and 8.2× their 2025 levels. Samsung is projected to post third‑quarter operating profit of 112 trillion won, up 817% YoY with a 55% operating margin, a record fourth consecutive quarter. SK Hynix is expected to record third‑quarter operating profit of 77 trillion won, up 579% YoY with a 78% margin. Both firms have committed over 60% of output to five‑year long‑term agreements with hyperscalers amid rising memory prices. Combined operating profit for the two companies is projected to rise from 91 trillion won in 2025 to 641 trillion won in 2026 and roughly 964 trillion won in 2027, against a combined market capitalisation of about 2,593 trillion won, suggesting substantial re‑rating potential. Shareholder returns are highlighted as a catalyst, with Samsung expected to return at least 600 trillion won over the next three years and a dividend yield above 7%.

New Street Research upgraded Micron Technology Inc. to Buy with a $1,250 price target, arguing that the current run diverges from historic memory‑cycle patterns. Micron’s stock has risen more than 10× since its April 2025 lows, while its production value (COGS) has increased only about 25%. The firm forecasts Micron will hold over $600 billion in cash and generate more than $150 billion in annual free cash flow by 2030. Beyond 2030, New Street models a milder down‑cycle, with a trough free‑cash‑flow burn of $18 billion and annual generation exceeding $100 billion across a four‑year downturn. AI is expected to account for two‑thirds of memory demand, driving 15% annual growth beyond 2030 versus a historical 10% average. High‑bandwidth memory (HBM) is deemed structurally less cyclical, justifying a premium that could lift the memory market’s total valuation to $2‑3 trillion by 2030.

HSBC downgraded Cisco Systems Inc. to Hold from Buy, cutting its price target to $120 from $137. Despite strong fourth‑quarter results—non‑GAAP EPS of $1.22, 4‑5% above estimates and 23.2% YoY growth, and non‑GAAP operating profit 6% above consensus—HSBC cited a lack of near‑term catalyst. Cisco guided fiscal 2027 revenue to $72.8 billion, a 15% increase over the pre‑results consensus of $68.8 billion, and an EPS outlook of $5.08, topping expectations. HSBC raised its fiscal 2027‑28 EPS estimates by 2% to 6%. Networking revenue is projected to rise 24.2% in fiscal 2027, driven by a 97% growth in the hyperscaler AI subsegment, before moderating to 12% in 2028 and 8% in 2029. Cisco booked $9.3 billion of hyperscaler orders in fiscal 2026, including $4 billion in Q4, with management expecting “meaningfully higher” orders this year. HSBC expects EPS growth to peak at 32% in Q1 2028, then ease to around 8% from fiscal 2028 onward. Cisco trades at 20.9× HSBC’s calendar 2027 estimates versus a sector median of 21.4×, a discount the bank deems justified given slower long‑term growth.

JPMorgan initiated Salesforce.com Inc. at Overweight with a December 2027 price target of $250, arguing that concerns about AI disruption are “overblown.” Analyst Samik Chatterjee highlighted an expected acceleration in the core business in the second half of FY27 and noted that fears of frontier‑AI competition should affect only a small portion of the business. He described the current valuation as inexpensive, with the market pricing in further deceleration rather than progress toward Salesforce’s “Rule of 50” target for FY30. Chatterjee expects upside primarily from a re‑rating, though even without acceleration, upside could stem from sustaining growth, margins, and Salesforce’s market‑leading CRM position.

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