Leading Wall Street analysts have reinforced confidence in the artificial intelligence sector this week, with Apple, Micron, Broadcom and SK Hynix receiving bullish endorsements amid expectations that AI-driven demand will continue to reshape the technology industry.
The series of research notes highlighted growing optimism around AI hardware, memory and semiconductor companies, although some firms cautioned that near-term risks remain for selected stocks.
HSBC upgraded Apple from Hold to Buy and raised its price target to US$366 from US$260, arguing that the technology giant has reached an “operational turning point” as it prepares to roll out enhanced artificial intelligence capabilities.
Analyst Nicolas Cote-Colisson said Apple is well positioned to capitalise on its installed base of approximately 2.5 billion devices through its revamped Apple Intelligence platform. He noted that Apple’s relatively modest capital expenditure, estimated at 2.5 per cent of 2026 sales, compares favourably with hyperscale cloud providers, which are investing heavily in AI infrastructure.
The bank expects Apple’s new agentic Siri, featuring visual intelligence and context-aware conversations across applications, to be a major catalyst. HSBC also pointed to a robust hardware roadmap, including the iPhone 18 Pro range, a foldable handset, smart glasses and a special edition iPhone planned for 2027.
Reflecting its stronger outlook, HSBC increased its 2027 and 2028 group revenue forecasts by between seven and nine per cent, while raising projections for iPhone and services revenue.
Meanwhile, Piper Sandler initiated coverage of SpaceX with a Neutral rating and a US$156 price target, citing short-term challenges despite maintaining a favourable long-term outlook.
Analyst Alexander Potter said uncertainty surrounding staged lock-up expirations, a potential Tesla acquisition and the company’s ambitious plans to deploy orbital AI data centres could limit near-term upside. He added that substantial capital expenditure requirements are likely to weigh on investor sentiment before the long-term benefits of the strategy become clearer.
Although Piper Sandler believes SpaceX and Rocket Lab are well positioned over the long term due to their reusable rocket technology and vertically integrated operations, the firm considers both companies fully valued over the next year. It instead identified AST SpaceMobile as offering a more attractive valuation and clearer earnings potential.
Bank of America reaffirmed its Buy rating on Micron, describing the memory chipmaker as its preferred investment in the sector as memory transitions from a cyclical commodity business into a strategic enabler of artificial intelligence.
The bank noted that memory now accounts for between 35 and 40 per cent of cloud AI capital expenditure, more than double historical levels, while memory stocks continue to trade at comparatively low valuation multiples.
Bank of America argued that investors are underestimating the industry’s move towards longer-term supply agreements and more stable pricing. It said Micron’s valuation should improve as AI-related high-bandwidth memory becomes a larger contributor to earnings.
The brokerage nevertheless warned that weaker memory pricing, increased competition from Chinese manufacturers, market share losses and softer demand across data centres, smartphones and personal computers remain key risks.
Morgan Stanley also reiterated its Overweight rating on Broadcom, dismissing concerns that Taiwan’s MediaTek could significantly reduce Broadcom’s role in supplying Google’s tensor processing units (TPUs).
Analyst Joseph Moore expects Broadcom to retain approximately 80 per cent of Google’s TPU business over time, arguing that fears of a substantial loss of market share are premature. He said MediaTek’s participation is credible but unlikely to disrupt Broadcom’s dominant position, particularly given Broadcom’s established high-bandwidth memory supply agreements and proven packaging capabilities.
Morgan Stanley forecasts Broadcom will generate around US$120 billion in AI revenue in fiscal 2027, with TPU-related sales contributing approximately US$80 billion.
The bank described Broadcom as one of its preferred AI investments, second only to Nvidia, citing its leadership in custom AI chips, networking technologies and diversified AI revenue streams.
Elsewhere, Barclays initiated coverage of SK Hynix’s newly listed American Depositary Receipts with an Overweight rating and a US$330 price target, implying potential upside of nearly 115 per cent.
The bank expects global DRAM supply to remain constrained through 2027 as demand from AI applications outpaces production growth. Barclays forecasts bit demand to increase by 35 per cent in 2027, exceeding expected supply growth of 20 per cent.
Analyst Simon Coles acknowledged rapid advances by Chinese memory producers but believes their impact on the broader market will remain limited in the near term. He expects SK Hynix to maintain its leadership in high-bandwidth memory with a market share exceeding 50 per cent for several years.
Barclays also projected that SK Hynix could hold cash equivalent to more than 40 per cent of its current market capitalisation by the end of 2027, providing significant capacity for shareholder returns through share buybacks.
The latest analyst recommendations underscore continued confidence that artificial intelligence will remain the principal driver of growth across the global semiconductor and technology sectors, even as investors weigh valuation concerns and execution risks in the years ahead.
