Apple’s enduring appeal as a tech investment is underscored by TD Cowen’s continued bullish stance, maintaining a $275 price target for Apple (AAPL) stock. This “Sustained Confidence“, as evidenced by analyst Krish Sankar’s insights, hinges on several factors, including favorable legal developments, advancements in artificial intelligence, and strategic hardware upgrades. TD Cowen’s analysis offers investors a perspective rooted in Apple’s potential for growth and innovation.
TD Cowen’s Enduring Optimism for Apple
TD Cowen has consistently affirmed its positive outlook on Apple, reiterating its “Buy” rating and a $275 price target. As recently as September 3, 2025, the firm reaffirmed this target, building upon similar sentiments expressed on July 27, 2025, June 17, 2025, June 10, 2025, and June 3, 2025. This sustained confidence stems from a multifaceted analysis of Apple’s current position and future prospects within the technology landscape.
Favorable Legal Ruling Boosts Advertising Revenue
A significant driver of TD Cowen’s bullish outlook is the favorable implications of a recent US District Court ruling concerning Google’s search business. According to TD Cowen’s analysis, the remedies outlined by the court are expected to positively impact Apple’s advertising revenues, specifically those derived from licensing Google’s Traffic Acquisition Cost (TAC) payments. The court’s decision ensures the continuation of revenue sharing and Safari search defaults, thereby preserving a substantial revenue stream for Apple. This aspect is crucial, as it provides a stable foundation for Apple’s advertising income, a key component of its overall financial performance.
Furthermore, the court’s non-exclusivity remedies empower Apple to explore generative AI product licensing from entities beyond Google, such as OpenAI. This strategic flexibility allows Apple to diversify its AI partnerships and potentially integrate cutting-edge AI technologies into its ecosystem. TD Cowen also suggests that Google’s existing revenue-sharing agreements will serve as a valuable benchmark for pricing competition in the generative AI search market, potentially benefiting Apple in future negotiations and solidifying its position in the evolving AI landscape.
Apple’s AI Advancements: A Key Growth Catalyst
TD Cowen emphasizes the transformative potential of artificial intelligence as a key driver of Apple’s future growth. The firm anticipates that generative AI will revolutionize smartphones, with large language models potentially evolving into core operating systems. Given Apple’s strong market position and robust gross profit margin, it is strategically positioned to capitalize on these advancements. Krish Sankar, the analyst at TD Cowen, highlights the importance of developer access to Apple’s Foundation Models for integrating models and applications, a development expected to progress by 2026. The increased integration of Apple Intelligence into iOS is also cited as a critical factor in enhancing user experience and driving device upgrades.
Hardware Innovations: The 2nm Chip Advantage
Looking ahead, TD Cowen anticipates Apple’s adoption of 2nm chips in the second half of 2026. This technological leap is expected to significantly enhance AI performance and stimulate device upgrades. The improved processing power and efficiency of 2nm chips will enable more sophisticated AI applications, creating a compelling reason for consumers to upgrade their devices. This hardware innovation is seen as a crucial element in Apple’s long-term growth strategy, ensuring that its products remain at the forefront of technological advancement.
Impact and Market Sentiment
TD Cowen’s sustained bullish stance suggests a positive long-term outlook for Apple, underpinned by strategic advantages in advertising revenue, expanding AI capabilities, and future hardware innovations. While Apple’s stock sentiment has experienced some fluctuations, the firm’s analysis reinforces the potential for growth driven by these factors, offering a confident perspective to investors. The reiteration of the $275 price target serves as a signal of confidence in Apple’s ability to navigate the evolving technology landscape and maintain its position as a leading innovator.
The firm’s analysis provides a comprehensive view of the factors influencing Apple’s stock performance, taking into account both legal and technological developments. By highlighting the potential benefits of the Google ruling, the advancements in AI, and the upcoming hardware upgrades, TD Cowen presents a compelling case for continued investment in Apple. This perspective is valuable for investors seeking to understand the underlying drivers of Apple’s growth and the potential for future returns.
In conclusion, TD Cowen’s unwavering “Buy” rating and $275 price target for Apple stock reflect a deep-seated confidence in the company’s strategic direction and its ability to capitalize on emerging opportunities. From favorable legal outcomes to groundbreaking AI integration and hardware innovations, Apple is positioned to maintain its competitive edge and deliver value to investors.
