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Apple (AAPL) shares inched higher in early trading on July 17 as senior HSBC analyst Nicolas Cote-Colisson issued a bullish note in favor of the iPhone maker. The initial uptick helped AAPL briefly steal the crown of “the world’s most valuable company” by market cap from Nvidia (NVDA).
Later in the day, however, Apple stock pared back its intraday gains, with its market cap slipping below Nvidia’s again. That said, AAPL has outperformed NVDA this year, currently up about 20% year-to-date.
Why Has Apple Stock Done So Well in 2026?
AAPL stock outperformance in 2026 reflects a shift in how investors view the artificial intelligence (AI) boom.
While tech hyperscalers pour billions into expensive data centers, Apple is being heavily rewarded for its highly disciplined, low-spending approach; instead of overspending on AI infrastructure, it uses private cloud servers and on-device processing.
Apple is deploying artificial intelligence capabilities across its installed base of over 2.5 active devices, creating significant monetization opportunities without requiring hyperscale infrastructure spending.
Why HSBC Recommends Buying AAPL Shares
Despite their strong year-to-date performance, HSBC analyst Cote-Colisson expects Apple shares to rip higher from here in the second half of 2026.
In a research note this morning, he upgraded the behemoth to “Buy” and significantly raised his price target to $366, indicating potential upside of more than 10% from here.
“Apple’s solid product pipeline and improved AI capabilities will support hardware sales growth,” Cote-Colisson told clients, adding AI applications will also “boost higher-margin Services revenue.”
In his research note, the HSBC analyst cited a powerful multi-year hardware pipeline, including this fall’s iPhone 18 Pro, a highly anticipated iPhone Air in early 2027, and future smart glasses.
A small dividend yield of 0.33% makes up for an additional reason to own AAPL for the long term.
What’s the Consensus Rating on Apple?
Note that other Wall Street analysts agree with Cote-Colisson’s constructive view on AAPL shares as well.
According to Barchart, the consensus rating on Apple sits at “Moderate Buy,” with price targets as high as $400 reinforcing that the stock isn’t out of juice just yet.
