Apple Stock Upgrade Raises Target to $400

Apple Inc. drew an Apple Stock Upgrade to Buy from Rothschild & Co Redburn on Aug. 17, 2026, which raised its price target to $400. The firm cited expectations for a premium foldable handset and a potential Nvidia-linked reset of Apple Intelligence as drivers that could boost iPhone average selling prices (ASPs) and services revenue.

Rothschild Upgrade and Market Outlook

Rothschild & Co Redburn analyst Timm Schulze-Melander led the client note upgrading Apple to Buy from Neutral. The firm’s new target implies roughly 30% upside to the then-current share price. While some commentary referenced analyst James Cordwell, the core upgrade and detailed analysis remain attributed to Schulze-Melander. Rothschild frames the foldable iPhone and Nvidia AI scenarios as analyst projections rather than company guidance.

Foldable iPhone Ultra Assumptions

The note assumes Apple will enter the premium foldable smartphone market with a device dubbed the "iPhone Ultra," expected to launch around September as an extra-premium model. Rothschild projects 14 million iPhone Ultra units in fiscal 2027, with about 4 million cannibalizing existing iPhone sales, resulting in roughly 10 million net new units. The firm estimates the iPhone Ultra’s list price at $2,199, an 83% ASP premium to the iPhone 17 Pro Max. This mix would raise overall iPhone ASPs by 11% through June 2027.

AI Strategy and Financial Forecasts

Rothschild describes Apple Intelligence, Apple’s AI branding, as trailing peer offerings. The analysts outline a "Fast Follower 2.0" approach, where Apple would deepen ties with Nvidia and deploy Nvidia’s open-source AI models. They argue these models perform comparably to closed state-of-the-art systems and could reduce Apple’s reliance on Google, despite a historically uneasy Apple-Nvidia relationship.

The firm’s financial model links these product and AI scenarios to higher forecasts. It projects iPhone sales growth of about 12% annually through fiscal 2030, up to 14% above consensus. iPhone revenue for fiscal 2026–2030 is modeled 3–14% above consensus, with total net income for fiscal 2030 8–18% above consensus. Rothschild highlights Apple’s installed base of approximately 2.55 billion devices and its high-margin Services business as structural supports for the above-consensus earnings case. The analysts also note risks including production timing, hinge and display durability, and ongoing dependence on third-party AI models.

The upgrade’s upside depends on two key tests: successful commercialization of the foldable iPhone Ultra that meaningfully raises ASPs, and visible progress on Apple Intelligence, particularly any Nvidia collaboration that would alter valuation assumptions.