Apple Rises as Investors Flee the AI Spending Arms Race

Apple plans to launch a foldable iPhone Ultra priced above $2,000 in early September, according to reports. The device will feature a pocket-friendly design, advanced hinge, and iPad-like app layouts, but lack a telephoto camera and Face ID. Foldable phones currently hold a 1.6% market share, with China driving significant sales. The launch marks Apple's first new product form factor since 2023.

U.S. and Iran signed a 60-day agreement, boosting stock futures. Fed signals possible 2026 rate hike, but Barclays expects rates unchanged through 2027. INTC rose 7% after Apple partnership news. AAPL and MU gained on chip demand. RUM surged 17% post-acquisition. MRNA faces FDA panel review. COIN bought by Ark Invest.

Rothschild upgraded Apple to Buy, raising its price target to $400, citing a foldable iPhone launch and AI strategy shift. Wolfe Research remains bullish on AI semiconductor stocks, with Nvidia as its top pick. Bernstein upgraded Analog Devices to Outperform, citing strong results and guidance. Goldman reiterated MongoDB at Buy, expecting Atlas growth near 30%. Deutsche Bank downgraded SentinelOne to Hold after a strong rally.

Apple (AAPL) reduced its EU App Store commission from 30% to 26% and replaced its Core Technology Fee with a 5% commission. The changes, effective Oct. 1, follow collaboration with the European Commission and resolve a regulatory dispute that resulted in a 500 million euro fine. The App Store is part of Apple's services segment, which generated $30.7 billion in Q3 2026, with the EU representing about 7% of global App Store revenue.

AAPL, ATAI, and UNH stocks reached 52-week highs. AAPL rose 2% after China approved its AI service and HSBC upgraded it to 'Buy' with a $366 target. ATAI surged 33% following its acquisition by Eli Lilly for up to $9.25 per share. UNH gained 1% after Q2 earnings beat estimates and raised its full-year profit outlook.

Jefferies downgraded Apple (AAPL) to underperform, cutting its price target to $263.66 from $285.56, citing canceled plans for an all-glass 20th-anniversary iPhone. The firm also reduced its fiscal 2028 earnings forecast by 2.1%. Shares fell 1.3% to 1.5% on the news. Apple's stock is still up over 15% year-to-date, with 30 of 47 analysts rating it buy or strong buy. However, six analysts now carry sell-equivalent ratings, the highest count since 2012.