Phillip Securities analyst Helena Wang upgraded shares of tech giants Apple (AAPL) and Microsoft (MSFT), turning more positive on both companies following their December-quarter results. However, her revised view indicates that Wang remains more bullish on Microsoft than on Apple.
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Wang upgraded AAPL from a “Sell” rating to a “Hold” and raised her price target from $230 to $260, implying that shares are fully valued at current levels. At the same time, she upgraded MSFT stock from a “Hold” rating to a “Buy” and kept her price target unchanged at $540, implying 25.5% upside potential.
AAPL Stock: iPhone 17 and Gemini Collab
Wang’s upgrade on Apple was driven by two core factors, namely its robust projected growth for the iPhone 17 lineup and the strategic value of Apple’s Gemini collaboration with Google (GOOGL). She views the partnership as a catalyst for enhancing Apple Intelligence, Apple’s AI suite, which should strengthen long-term ecosystem monetization through deeper user retention and engagement.
Despite the upgrade, Wang adopts a cautious stance, framing Apple as being in a “prove-it” phase. She noted that rising memory costs, tied to AI-driven demands for on-device processing, pose margin risks. This will require strong execution on cost control and AI differentiation to justify Apple’s premium valuation.
MSFT Stock: Benefiting from a Price Correction
Wang’s upgrade of Microsoft follows the stock’s recent pullback, which she believes has created an attractive entry point. The rating change brings Microsoft’s valuation back in line with its strong fundamentals, including an expected 16% year-over-year revenue increase in fiscal Q3.
She highlighted sustained momentum in Microsoft’s commercial segments, including cloud, productivity tools, and enterprise software, as the primary growth engines. Azure cloud revenue is expected to surge 37% year-over-year, outpacing overall company growth and signaling market share gains in hyperscale cloud. Microsoft is ramping up Azure capacity because demand outstrips supply, boosting its pricing power and justifying big AI investments, like OpenAI ties.
AAPL vs. MSFT: Which Stock is a Better Buy?
Using TipRanks Stock Comparison Tool, we identified which stock among Apple and Microsoft is currently favored by analysts.
Wall Street has a Strong Buy consensus rating on MSFT and a Moderate Buy rating on AAPL, with Microsoft stock offering a higher upside potential over the next twelve months.
