Apple (AAPL) Upgraded by Investment Bank to Hold

Investment bank Jefferies upgraded Apple (AAPL) stock to Hold from Underperform, citing valuation and its belief that the iPhone maker would likely be exempt from U.S. tariffs.

However, Schwab Network commentator Kevin Green warned that the tech giant could be negatively impacted by the current trade war between the U.S. and China.

A wide view of an Apple store, showing the range of products the company offers.

Jefferies Upgrade of AAPL

The investment bank raised its rating on the iPhone maker despite cutting its price target on the name to $1,267.88 from $232.33. Jefferies is assuming that AAPL will be exempt from U.S. tariffs, and the investment bank believes that such a development will be positive for the shares.

Additionally, Jefferies contends that a significant amount of uncertainty is priced into the shares at their current levels.

Green Discusses the Macro Picture

“Megacap names like Apple” could be impacted by the continuation of the trade dispute between America and China, Green warned.

“The biggest risk is the U.S. response to China’s recent tariff increase,” he added.

Noting that the Vix had reached a very high 56.5, Green said that the market was facing “a lot of unknowns” at this point.

While we acknowledge the potential of AAPL, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than AAPL but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires

Disclosure: None. This article is originally published at Insider Monkey.