HSBC Upgrades Apple on AI Turning Point; Analysts Bullish on Micron, SK Hynix

HSBC upgraded Apple Inc. (NASDAQ:AAPL) to Buy from Hold this week, arguing the technology giant has reached an "operational turning point" driven by its artificial intelligence strategy and a robust product pipeline.

HSBC Sees AI Inflection for Apple

Analysts at HSBC raised their price target on Apple shares to $366 from a previous $260. The bank's report, authored by analyst Nicolas Cote-Colisson, stated that while it previously favored other parts of the AI value chain, it now believes Apple "is well placed to leverage its 2.5bn installed device base with its forthcoming revamped Apple Intelligence."

The upgrade highlighted the upcoming deployment of a new, more advanced Siri as a key catalyst. HSBC also cited a strong hardware roadmap, including new iPhones and a potential foldable device, leading the bank to raise its 2027-28 group revenue forecasts by 7-9%.

Memory Makers in the Spotlight

Bank of America and Barclays issued bullish calls on memory chip manufacturers, citing their critical role as AI enablers.

Micron Named Top Pick by BofA

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Bank of America designated Micron (NASDAQ:MU) as its top stock pick, reiterating a Buy rating with a $1,550 price target. The bank argued that memory has shifted from a cyclical commodity to a durable investment trend, now representing 35-40% of cloud AI capital expenditures. BofA believes investors are underestimating the industry's move toward more predictable pricing and that valuation multiples should expand.

Barclays Initiates on SK Hynix with Over 100% Upside

Barclays initiated coverage on the newly-listed American Depositary Receipts of SK Hynix (NASDAQ:SKHY) with an Overweight rating and a $330 price target. The bank's analysis points to a worsening supply shortage in the DRAM market into 2027, which it expects will benefit SK Hynix. Barclays anticipates the company will maintain its leadership in high-bandwidth memory (HBM) and build a significant cash position, creating opportunities for share buybacks.

Analysts Weigh Chip Competition and Headwinds

Other significant calls focused on the competitive landscape for custom chipmaker Broadcom and near-term challenges for SpaceX.

• Broadcom (AVGO): Morgan Stanley reiterated its Overweight rating, pushing back against investor concerns that MediaTek could significantly erode Broadcom's business with Google's TPU chips. The firm stated it expects Broadcom to retain roughly 80% of the TPU market share over time, calling fears of displacement "premature."
• SpaceX (SPCX): Piper Sandler initiated coverage of SpaceX at Neutral with a $156 price target. Despite a constructive multi-year view, the firm cited "idiosyncratic near-term headwinds," including staged lockup expirations and the massive capital expenditures required to build out its planned orbital AI datacenters.