Apple (AAPL) Could Gain From Tariff Shake-Up, iPhone and AI Bets Drive Optimism

Apple (AAPL, Financials) is drawing support from Loop Capital, which reiterated its $215 price target and Hold rating despite looming tariff pressures. The brokerage sees production and pricing adjustmentsparticularly for the iPhone 17 lineacting as stabilizers in a volatile trade environment.

Apple has reportedly raised the average selling price of its iPhone 17 Pro and Pro Max by $100 to $200, according to Loop’s supply chain checks. The firm also noted that Apple lifted its iPhone 17 shipment forecast for the September and December quarters to 100 million units, up from 92 million. Orders for the lower-end iPhone 17 Air climbed to 31 million, an increase of 15 million units from earlier projections.

Loop believes Apple’s move to front-load shipments into the March and June quarters could help offset the near-term impact of tariffs, serving as a bridge to the iPhone 17 launch. The firm added that investors may tolerate margin pressure if the iPhone 17 and iPhone 18 models deliver on expectations for a major hardware redesignthe most significant in years.

Apple’s AI ambitions are also starting to come into focus. Loop highlighted a $1 billion order for GB300 NVL72 server clusters from Supermicro and Dell (DELL, Financials), suggesting Apple may be pivoting its Siri strategy amid broader moves into generative AI.

The takeaway: While tariffs pose a risk to Apple’s near-term profitability, pricing power, redesigned product cycles, and early AI infrastructure investments could offer upside into 2025.

This article first appeared on GuruFocus.