Apple's stock price fell, Needham believes that AI risks are rising and the iPhone upgrade cycle is limited.

Apple's stock price has fallen, and Wall Street remains concerned about its growth prospects and its position in the field of artificial intelligence. Needham downgraded the stock from "buy" to "hold," becoming the latest company to be cautious about Apple's outlook. Analyst Laura Martin believes the company faces numerous risks, including competition, weakening growth trends, and an "overvalued valuation from multiple indicators." "For this stock to rise, it must have an iPhone replacement cycle as a catalyst, and we do not expect to see this situation in the next 12 months," Martin wrote, adding that the innovation of generative artificial intelligence - an area in which Apple has been lacking - "has opened the door for new hardware forms and poses a threat to iOS devices."