Analyst Confidence in Apple Slips to 2020 Levels
Apple Inc. (AAPL) is facing renewed skepticism from Wall Street. On Thursday, the tech giant was downgraded by both D.A. Davidson and Phillip Securities, pushing its analyst sentiment to the lowest point in over five years. Bloomberg data shows just 55% of analysts currently recommend buying the stock — a sharp contrast to megacap peers such as Nvidia (NVDA), Amazon (AMZN), and Microsoft (MSFT), each with buy ratings exceeding 90%.
This decline in consensus pushes Apple’s rating to 3.9 out of 5, a level not seen since the early pandemic period in 2020.
AI and Innovation Concerns Dominate Downgrades
D.A. Davidson’s downgrade follows Apple’s recent product reveal, which failed to impress. Analyst Gil Luria cited lackluster developments in AI integration and underwhelming new hardware, including a thinner iPhone model. “While we were initially excited about the prospects of Apple’s role in the AI ecosystem and potential major upgrade cycle, it has become clear that neither are likely to come to fruition in the near-term,” Luria wrote.
He added that without significant product reinvention or compelling new offerings, Apple’s growth outlook appears constrained.
Phillip Securities echoed similar concerns. The firm downgraded Apple to “reduce” from “neutral,” citing the recent rally from April lows as a technical driver rather than a fundamental turnaround. Analyst Helena Wang emphasized the company’s continued weakness in China and its absence from the current AI innovation wave.
Apple’s 2025: Underperforming the Tech Titans
Despite a modest 0.6% bounce on Thursday, Apple shares remain down 9% year-to-date. In stark contrast, the Nasdaq 100 is up 14%, with Nvidia and Amazon continuing to fuel the index’s strength.
Apple had previously rallied over 30% from its April lows, driven by easing tariff concerns. However, that rebound hasn’t been enough to offset investor worries about its longer-term growth narrative.
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Final Take: Apple Faces a Strategic Crossroads
As Apple falls behind in AI leadership and struggles with product innovation, analyst confidence is eroding. While the brand remains strong, investors appear to be questioning whether Apple can reclaim its disruptive edge in a fast-evolving tech landscape.
Disclaimer
This article is intended for informational purposes only and does not constitute financial advice. Please consult with a financial advisor before making investment decisions.
