AI Giants or Small-Cap Recovery? ETFs to Monitor as Morgan Stanley Targets S&P 500 at 7,800
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 19 2025
0mins
Should l Buy AAPL?
Source: Benzinga
Morgan Stanley's Forecast: Morgan Stanley has raised its year-end 2026 forecast for the S&P 500 to 7,800, citing stronger earnings and productivity gains from AI adoption, while UBS expects the index to reach 7,500 by the end of 2025.
Market Dynamics: The bank predicts a two-speed market rally, with mega-cap tech stocks leading the AI boom and small caps potentially outperforming as the Fed cuts rates and business confidence improves.
ETF Opportunities: Key ETFs like the Technology Select Sector SPDR Fund (XLK) and iShares Russell 2000 ETF (IWM) are positioned to benefit from the expected surge in capital expenditures and small-cap growth.
Equal-Weight Strategies: Equal-weight ETFs, such as Invesco S&P 500 Equal Weight ETF (RSP), may provide balanced exposure and reduce concentration risk, appealing to investors looking to capitalize on both tech leadership and small-cap recovery.
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Analyst Views on AAPL
Wall Street analysts forecast AAPL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AAPL is 299.69 USD with a low forecast of 230.00 USD and a high forecast of 350.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
32 Analyst Rating
19 Buy
11 Hold
2 Sell
Moderate Buy
Current: 275.500
Low
230.00
Averages
299.69
High
350.00
Current: 275.500
Low
230.00
Averages
299.69
High
350.00
About AAPL
Apple Inc. designs, manufactures and markets smartphones, personal computers, tablets, wearables and accessories, and sells a variety of related services. Its product categories include iPhone, Mac, iPad, and Wearables, Home and Accessories. Its software platforms include iOS, iPadOS, macOS, watchOS, visionOS, and tvOS. Its services include advertising, AppleCare, cloud services, digital content and payment services. The Company operates various platforms, including the App Store, that allow customers to discover and download applications and digital content, such as books, music, video, games and podcasts. It also offers digital content through subscription-based services, including Apple Arcade, Apple Fitness+, Apple Music, Apple News+, and Apple TV+. Its products include iPhone 16 Pro, iPhone 16, iPhone 15, iPhone 14, iPhone SE, MacBook Air, MacBook Pro, iMac, Mac mini, Mac Studio, Mac Pro, iPad Pro, iPad Air, AirPods, AirPods Pro, AirPods Max, Apple TV, Apple Vision Pro and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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