Apple Inc. shares declined 0.3% to $273.83 in after-hours trading on Tuesday, following a session where the stock traded within a narrow range near $274. The company's market capitalization stood at approximately $4.05 trillion.
Analysts at Bernstein increased their price target on Apple to $340 from $325, suggesting the market is overly focused on near-term memory cost pressures. The firm pointed to the upcoming launch of "Apple Intelligence" and an enhanced Siri 2.0, expected later this year, as the next major catalysts for the stock.
Bernstein analyst Mark Newman noted that component costs for the next iPhone could rise by about 15%, with mobile DRAM contract prices having surged 237% since the second quarter of 2025. The key question is whether Apple can offset these increases through pricing or product mix adjustments to protect its margins.
Apple's artificial intelligence strategy is becoming increasingly linked with Alphabet. According to previous reports, Apple has selected Google's Gemini models to power a new version of Siri under a multi-year agreement, with integration expected later this year.
Dividend dynamics also influenced trading this week. Apple stock traded ex-dividend, with a quarterly cash dividend of $0.26 per share payable on February 12 to shareholders of record as of February 9.
Broader market movements saw Alphabet shares drop 1.8% and Microsoft slip 0.1% on Tuesday, illustrating the volatile nature of AI-related sentiment among technology giants. Upcoming economic data, including the January employment report and consumer price index, could further influence valuation assessments for high-multiple tech stocks.
