Goldman Sachs Reiterates Buy Rating#
Goldman Sachs has reaffirmed its Buy rating for Apple Inc. (NASDAQ:AAPL) and set a price target of $330. This comes as Apple faces challenges from increasing costs of memory chips, specifically DRAM (Dynamic Random Access Memory), which are essential for devices like smartphones and computers.
Earnings Forecast#
Analyst Michael Ng projects that Apple will report earnings of $2.00 per share for the second quarter of fiscal 2026, surpassing the consensus estimate of $1.93. This optimistic outlook is based on anticipated strong sales from iPhones and Macs, along with healthy profit margins.
Market Performance#
So far this year, Apple’s stock has dropped by 4%, while the S&P 500 has gained 2%. This decline is attributed to a rise in DRAM prices, which have surged since Fall 2025 due to a shortage driven by increased demand from artificial intelligence applications. Despite this, Goldman Sachs believes that Apple is effectively managing its supply of mobile DRAM to remain competitive in the market.
Growth in Services and Market Share#
Goldman Sachs also expects Apple’s Services revenue to grow by 14% year-over-year, fueled by offerings like iCloud+, AppleCare+, and advertising. Apple’s gross profit margin is currently at 47.3%, indicating strong pricing power. Additionally, Apple captured a 21% share of the global smartphone market in the first quarter of 2026, marking its first leadership in this quarter, thanks to the popularity of the iPhone 17 series and successful trade-in programs.
In summary, while Apple faces challenges from rising chip costs, strong earnings forecasts and market performance suggest a positive outlook for the company.