Late last month, Apple (AAPL) briefly overtook Nvidia (NVDA) to become the most valuable company in the world. However, the upswing did not last as the company soon fell back to the third position. Apple stock price, however, has seen some gains recently, closing 1.96% (5.96 points) higher on Tuesday, August 4, 2026. AAPL’s price gained an additional 0.69% (2.12) points in the pre-market hours. Despite the rally, Phillip Securities has reduced Apple’s stock price target to $290, while signaling a “sell” sign. Let’s discuss why.
Why Has Phillip Securities Reduced Apple’s Stock Price Target?
One major reason behind the revised stock target for Apple is the rising memory chip prices amid supply shortage. The AI boom has redirected a large chunk of memory chips away from consumer electronics and into AI computation. The move has led to several companies raising prices of their items. Apple sales is projected to take a hit due to the development.
Another reason for the stock price downgrade could be the uncertainties around Apple Intelligence. There is no clear evidence that Apple Intelligence features are meaningfully pushing people to upgrade their products. The emphasis on AI may be running its course. Users may not be hyped around AI features on their phones, tablets, and laptops. A similar sentiment was seen with Microsoft’s Copilot program. Increased AI spending from various companies has also been met with some criticism. Many believe that the move may not be sustainable.
Also Read: Wall Street Reacts to AMD Earnings Report After Sky-High AI Expectations
The current market seems to be dominated with AI-based tech stocks. While Apple (AAPL) remains one of the most valuable companies in the world, the company could face issues from the broader market sentiment. There is a lot of talk about a potential AI bubble which may also impact investors.