The Apple Car’s Demise Is Both Good and Bad for EV Makers
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 28 2024
0mins
Should l Buy AAPL?
Source: Bloomberg
- Apple Abandons Car Project: Apple has decided to end its project of developing and designing its own car after a decade-long effort, with employees being reassigned to work on generative AI.
- Industry Impact: The decision by Apple to not enter the automaking industry has relieved competitors who were anticipating its entry and raised questions about margins in the market.
- Market Changes: Apple's delay in entering the market allowed other companies like Tesla to advance in electric vehicles, making it challenging for Apple to differentiate itself and maintain superior margins.
- Focus on AI: Apple's shift towards AI instead of car manufacturing is seen as a strategic move for long-term profit potential, with a need to invest more in AI technology to compete effectively.
- Future Presence: Despite abandoning the car project, Apple's technology is expected to remain influential in future vehicles, potentially without direct involvement in manufacturing.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy AAPL?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
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.
Apple Inc. Looks Forward to 50th Anniversary Celebrations in 2026
- 50th Anniversary Plans: Apple Inc. is set to celebrate its 50th anniversary in 2026, with CEO Tim Cook indicating that the company is reflecting on its past and planning celebrations, which could attract more attention and enhance brand image.
- Historical Reflection and Future Focus: Cook mentioned that Apple is reviewing old photographs and products to commemorate its impact over the past 50 years, and while the company typically focuses on the future, this reflection may inspire new innovations.
- Stock Performance Analysis: Apple stock rose 11.5% in 2025 but underperformed against the S&P 500's 16.6%, with a year-to-date increase of 1.7% in 2026; despite reporting record quarterly results, investors are hoping for a more positive market reaction.
- New Product Expectations: As the 50th anniversary approaches, Apple may introduce new foldable smartphones, and combined with the celebrations, this could attract more consumer attention, further driving sales growth and solidifying market position.
See More
Anthropic Closes $30 Billion Funding Round at $380 Billion Valuation
- Record Funding Round: Anthropic announced the closure of a $30 billion funding round, achieving a post-money valuation of $380 billion, making it the second-largest private financing round in tech history, reflecting strong market demand and investor confidence in AI technology.
- Revenue Growth: The company's annualized revenue has surged to $14 billion, up from approximately $10 billion last year, indicating its success in the enterprise market, particularly driven by the popularity of the Claude Code tool, which has rapidly increased enterprise user adoption.
- Intensifying Competition: With Google planning to invest up to $185 billion in capital expenditures this year, Anthropic faces fierce market competition and must continue to invest in infrastructure and R&D to maintain its market position and technological edge.
- Strong Customer Demand: Anthropic's CFO noted that demand for Claude is increasing, particularly in enterprise-grade products, and this funding will support infrastructure expansion and product development, further solidifying its leadership position in the AI sector.
See More
Wall Street Rattled by Cisco's Cautious Outlook
- Cisco's Stock Plunge: Despite beating earnings and revenue expectations, Cisco Systems Inc. (NASDAQ:CSCO) saw its shares drop over 11%, marking the worst single-day decline since May 2022, as investors expressed concerns over profit durability.
- Tech Sector Decline: The iShares Tech-Expanded Software Sector ETF (NYSE:IGV) fell 3.7%, revisiting lows from last week, indicating heightened sensitivity to AI disruption risks following Cisco's outlook.
- Small Caps Underperform: The Nasdaq 100 dropped 1.7%, while both the S&P 500 and Dow Jones Industrial Average lost 1.2%, with the Russell 2000 small-cap index sliding 2.4%, reflecting a cautious market sentiment.
- Increased Volatility: The VIX surged 16%, as investors rotated into defensive sectors, with utilities and consumer staples outperforming, highlighting a risk-off tone in the market.
See More
AI Disruption in Software Sector May Lead to Job Losses
- AI Threat to Software Sector: Fundstrat's Tom Lee warns that AI is wreaking havoc on the $450 billion software sector, predicting significant job losses as software companies face existential threats, potentially leading to deflationary pressures.
- Changing Inflation Expectations: The core CPI is projected to drop to 2.52% in Friday's report, aligning with the 2017-2019 average, indicating a return to pre-COVID inflation levels, which may prompt the Fed to adopt a more dovish monetary policy.
- Market Capital Flow: Lee notes that investors are rotating out of the Magnificent 7 into companies supplying AI infrastructure, such as energy providers and industrial manufacturers, which could trigger a 10-20% decline in the U.S. market.
- Crypto Market Bottom Signal: Despite challenges, Lee believes the crypto market shows signs of bottoming due to positive fundamentals, even as investors struggle with the decision to stay in crypto versus moving to stocks and gold.
See More
YouTube App Launches on Apple Vision Pro Headset
- YouTube App Launch: The YouTube app is now available on the App Store for Vision Pro users, enabling access to 8K videos and supporting 3D, 360-degree, and VR180 formats, marking a significant expansion of Apple's virtual reality content ecosystem.
- Vision Pro Pricing and Market Response: Priced at $3,499, the Vision Pro has faced criticism for its high cost and limited battery life, although Apple has addressed some concerns with the launch of the upgraded M5 version.
- Virtual Reality Market Challenges: According to Counterpoint Research, the virtual reality headset market has shrunk by 14% year-on-year, with Meta's Quest holding about 80% market share, indicating a lack of consumer interest.
- Apple's Strategic Shift: Apple is reportedly shifting focus towards developing AI-powered smart glasses, potentially abandoning extensive upgrades for the Vision Pro, reflecting a cautious outlook on the virtual reality market's future.
See More
US Stock Market Volatility as Tech Stocks Weigh Down Indices
- Tech Stock Pressure: The S&P 500 index fell by 0.52% and the Nasdaq 100 index dropped by 1.08% due to weakness in the Magnificent Seven tech stocks, indicating investor concerns that could dampen market confidence.
- Cisco Profit Warning: Cisco Systems forecasted that rising memory chip prices would erode profitability, leading to a more than 10% drop in its stock price, which may prompt investors to revise down their future performance expectations, negatively impacting overall market sentiment.
- Employment Data Impact: Initial US jobless claims fell by 5,000 to 227,000, reflecting a slightly weaker labor market, which could influence the Federal Reserve's monetary policy decisions and lower market expectations for future rate cuts.
- Chip Demand Recovery: Sandisk's stock rose over 7% following Kioxia's forecast of strong demand for NAND memory chips, indicating growth potential in the AI infrastructure sector, which may create new investment opportunities for related companies.
See More
Apple Inc. Looks Forward to 50th Anniversary Celebrations in 2026
- 50th Anniversary Plans: Apple Inc. is set to celebrate its 50th anniversary in 2026, with CEO Tim Cook indicating that the company is reflecting on its past and planning celebrations, which could attract more attention and enhance brand image.
- Historical Reflection and Future Focus: Cook mentioned that Apple is reviewing old photographs and products to commemorate its impact over the past 50 years, and while the company typically focuses on the future, this reflection may inspire new innovations.
- Stock Performance Analysis: Apple stock rose 11.5% in 2025 but underperformed against the S&P 500's 16.6%, with a year-to-date increase of 1.7% in 2026; despite reporting record quarterly results, investors are hoping for a more positive market reaction.
- New Product Expectations: As the 50th anniversary approaches, Apple may introduce new foldable smartphones, and combined with the celebrations, this could attract more consumer attention, further driving sales growth and solidifying market position.
See More
Anthropic Closes $30 Billion Funding Round at $380 Billion Valuation
- Record Funding Round: Anthropic announced the closure of a $30 billion funding round, achieving a post-money valuation of $380 billion, making it the second-largest private financing round in tech history, reflecting strong market demand and investor confidence in AI technology.
- Revenue Growth: The company's annualized revenue has surged to $14 billion, up from approximately $10 billion last year, indicating its success in the enterprise market, particularly driven by the popularity of the Claude Code tool, which has rapidly increased enterprise user adoption.
- Intensifying Competition: With Google planning to invest up to $185 billion in capital expenditures this year, Anthropic faces fierce market competition and must continue to invest in infrastructure and R&D to maintain its market position and technological edge.
- Strong Customer Demand: Anthropic's CFO noted that demand for Claude is increasing, particularly in enterprise-grade products, and this funding will support infrastructure expansion and product development, further solidifying its leadership position in the AI sector.
See More
Wall Street Rattled by Cisco's Cautious Outlook
- Cisco's Stock Plunge: Despite beating earnings and revenue expectations, Cisco Systems Inc. (NASDAQ:CSCO) saw its shares drop over 11%, marking the worst single-day decline since May 2022, as investors expressed concerns over profit durability.
- Tech Sector Decline: The iShares Tech-Expanded Software Sector ETF (NYSE:IGV) fell 3.7%, revisiting lows from last week, indicating heightened sensitivity to AI disruption risks following Cisco's outlook.
- Small Caps Underperform: The Nasdaq 100 dropped 1.7%, while both the S&P 500 and Dow Jones Industrial Average lost 1.2%, with the Russell 2000 small-cap index sliding 2.4%, reflecting a cautious market sentiment.
- Increased Volatility: The VIX surged 16%, as investors rotated into defensive sectors, with utilities and consumer staples outperforming, highlighting a risk-off tone in the market.
See More
AI Disruption in Software Sector May Lead to Job Losses
- AI Threat to Software Sector: Fundstrat's Tom Lee warns that AI is wreaking havoc on the $450 billion software sector, predicting significant job losses as software companies face existential threats, potentially leading to deflationary pressures.
- Changing Inflation Expectations: The core CPI is projected to drop to 2.52% in Friday's report, aligning with the 2017-2019 average, indicating a return to pre-COVID inflation levels, which may prompt the Fed to adopt a more dovish monetary policy.
- Market Capital Flow: Lee notes that investors are rotating out of the Magnificent 7 into companies supplying AI infrastructure, such as energy providers and industrial manufacturers, which could trigger a 10-20% decline in the U.S. market.
- Crypto Market Bottom Signal: Despite challenges, Lee believes the crypto market shows signs of bottoming due to positive fundamentals, even as investors struggle with the decision to stay in crypto versus moving to stocks and gold.
See More
YouTube App Launches on Apple Vision Pro Headset
- YouTube App Launch: The YouTube app is now available on the App Store for Vision Pro users, enabling access to 8K videos and supporting 3D, 360-degree, and VR180 formats, marking a significant expansion of Apple's virtual reality content ecosystem.
- Vision Pro Pricing and Market Response: Priced at $3,499, the Vision Pro has faced criticism for its high cost and limited battery life, although Apple has addressed some concerns with the launch of the upgraded M5 version.
- Virtual Reality Market Challenges: According to Counterpoint Research, the virtual reality headset market has shrunk by 14% year-on-year, with Meta's Quest holding about 80% market share, indicating a lack of consumer interest.
- Apple's Strategic Shift: Apple is reportedly shifting focus towards developing AI-powered smart glasses, potentially abandoning extensive upgrades for the Vision Pro, reflecting a cautious outlook on the virtual reality market's future.
See More
US Stock Market Volatility as Tech Stocks Weigh Down Indices
- Tech Stock Pressure: The S&P 500 index fell by 0.52% and the Nasdaq 100 index dropped by 1.08% due to weakness in the Magnificent Seven tech stocks, indicating investor concerns that could dampen market confidence.
- Cisco Profit Warning: Cisco Systems forecasted that rising memory chip prices would erode profitability, leading to a more than 10% drop in its stock price, which may prompt investors to revise down their future performance expectations, negatively impacting overall market sentiment.
- Employment Data Impact: Initial US jobless claims fell by 5,000 to 227,000, reflecting a slightly weaker labor market, which could influence the Federal Reserve's monetary policy decisions and lower market expectations for future rate cuts.
- Chip Demand Recovery: Sandisk's stock rose over 7% following Kioxia's forecast of strong demand for NAND memory chips, indicating growth potential in the AI infrastructure sector, which may create new investment opportunities for related companies.
See More
