Apple shares fell approximately 9.6% by Friday's close after Melius Research analyst Ben Reitzes cut his price target to $370 from $385 while maintaining a buy rating. Reitzes suggested Apple could use Intel to supplement processor manufacturing currently concentrated at Taiwan Semiconductor Manufacturing. Apple expects current-quarter revenue growth between 9% and 11%, below Wall Street's roughly 12% forecast, as shortages of processors and memory constrain iPhone and Mac production. At least four brokerages reduced their targets following the results, while three raised them, leaving the median objective near $330. The Intel proposal remains an analyst recommendation rather than a confirmed sourcing agreement.
Apple Inc.Price target cut and revenue guidance below expectations
Amazon.com Inc
Taiwan Semiconductor Manufacturing Co. Ltd.Apple may diversify away from TSMC, and shortages constrain production
Intel CorporationAnalyst suggests Apple could use Intel for processor manufacturing