1. Rosenblatt Downgrades Apple Amid Concerns Over AI Impact

Rosenblatt Securities lowered its recommendation for Apple (NASDAQ: AAPL) from Buy to Neutral, updating the price target from $263 to $217. This decision stems from worries about a lack of AI-driven acceleration in iPhone sales, despite Apple’s solid performance in Q2 2025. Analyst Barton Crockett emphasized the necessity for increased iPhone sales powered by AI for Apple to achieve noteworthy stock performance.

• Q2 2025 Performance: Apple reported a revenue of $95.4 billion, a 5.1% increase year-over-year, with iPhone sales rising by 2%.

• Production Adjustments: Apple is shifting its iPhone production to India, with other products manufactured in Vietnam.

2. Seaport Research Partners Initiates Sell Rating for Nvidia

Seaport Research Partners assigned a rare Sell rating for Nvidia (NASDAQ: NVDA) with a $100 price target. Although Nvidia has greatly benefited from the AI boom, analysts caution against inflated valuations and challenges in AI deployment. Heightened competition from hyperscalers and in-house alternatives at Nvidia could lead to reduced AI budgets and subpar performance relative to competitors.

• Challenges Ahead: Deployment complications, heightened competition, and uncertain returns on AI investments pose significant risks.

• Key Risk: Slower AI budget growth anticipated in 2026.

3. Morgan Stanley Reaffirms TSMC as Top Pick

Morgan Stanley has reinstated its recommendation for Taiwan Semiconductor Manufacturing Company (NYSE: TSM) as a top investment choice, boosted by rising confidence from increasing AI capital expenditures and less risk associated with previous concerns. TSMC is expected to see enhanced demand for advanced packaging technology from key clients like Meta and Microsoft.

• Positive Indicators: Meta recently increased its 2025 capital expenditure outlook by $7 billion, and Microsoft continues to invest in server kits.

• Critical Role of Taiwan: TSMC’s contribution to producing vital components for AI hardware is set to grow.

4. JPMorgan Upgrades Western Digital

JPMorgan upgraded Western Digital (NASDAQ: WDC) to an Overweight rating, citing strong earnings growth linked to AI demand. The company focuses on advanced hard drives for cloud services and data centers, leading to robust demand. Western Digital’s advancements in high-capacity HDDs and its progress in HAMR technology are further encouraging.

• Q1 Earnings Overview: Results exceeded expectations, with an optimistic outlook for the upcoming June quarter.

• Innovative Products: The launch of 26TB and 32TB drives is projected to surpass 1 million units in the next quarter.

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