Bernstein Analyst Highlights Top AI Hardware Stocks, Apple Leads with 22.5% Upside Potential
Bernstein analyst Mark Newman has initiated coverage of the IT hardware sector, identifying Apple (AAPL), Dell Technologies (DELL), Seagate (STX), and SanDisk (SNDK) as key beneficiaries of the AI-driven "intelligence revolution." All four stocks received "Buy" ratings, with Apple standing out due to its ability to integrate Gemini's AI across its ecosystem and a reduced downside risk from Alphabet's search dominance.
Newman set a $290 price target for AAPL, implying a 22.5% upside based on 32x projected 2027 earnings. Meanwhile, Super Micro Computer (SMCI), Western Digital (WDC), and others were assigned "Hold" ratings, reflecting a more cautious outlook on near-term performance.
The report underscores sustained IT hardware spending growth as AI expands total addressable markets. "Apple is uniquely positioned to reap AI rewards," Newman noted, emphasizing the company's ecosystem advantages and strategic partnerships.