Loop Capital holds a Hold rating for Apple Inc. (NASDAQ:AAPL), signaling a $215 price target based on anticipated benefits from tariff-related production shifts that may spur iPhone demand ahead of the upcoming iPhone 17 launch.

Utilizing Tariffs as Leverage

• Shifting Shipments: Apple is expected to accelerate iPhone production into the March and June quarters to avoid future tariffs linked with the iPhone 17 transition.

• Increased Selling Prices: Loop’s analysis indicates that Apple has set higher average selling prices on iPhone 17 Pro/Pro Max models by $100 to $200, potentially counteracting margin pressures from tariffs.

• Shipment Forecasts: Projections for iPhone 17 shipments have been revised upward to 100 million units (from 92 million), including 31 million for the iPhone 17 Air—a significant increase from earlier estimates.

Investors can remain optimistic, as Loop encourages viewing tariff challenges as manageable hurdles if enthusiasm for the upcoming iPhone 17—along with future models—persists.

Focus on Generative AI Investments

Loop points out Apple’s pivot toward developing generative AI infrastructure:

• Major Orders: Apple has placed $1 billion in orders for GB300 NVL72 from Supermicro and Dell (NYSE: DEL/DELL), aiming to enhance its internal compute capabilities for services like Siri.

This strategic investment suggests a conscious shift as Apple moves towards a more AI-centric model, indicated by upcoming developments in Siri and associated technologies.