Some analysts believe that tech giant Apple (AAPL) should consider finding a new CEO, as worries grow over the company’s slow progress in artificial intelligence. According to analysts Walter Piecyk and Joe Galone of LightShed Partners, Apple now needs a leader who focuses more on building innovative products rather than managing logistics. It is worth noting that Tim Cook, who has been CEO since 2011, previously ran Apple’s supply chain operations. The comments came shortly after Apple announced that Chief Operating Officer Jeff Williams would step down this month. Williams will be replaced by Sabih Khan, who has worked at Apple for 30 years.
Don’t Miss TipRanks’ Half-Year Sale
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
- Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
Williams was once seen as a possible successor to Cook, but with his departure, many now expect John Ternus, Apple’s senior vice president of hardware engineering, to be next in line. At the same time, Apple’s stock is falling behind competitors like Microsoft (MSFT) and Meta (META) in 2025, partly due to concerns that Apple is late in embracing AI. So far this year, Apple shares are down 16%, while Meta and Microsoft are up 25% and 19%, respectively. LightShed analysts warned that if Apple misses out on the AI shift, it could seriously hurt the company’s future growth.
To be fair, Apple’s stock drop this year looks small compared to the massive gains it has made under Cook’s leadership. In fact, since he became CEO, Apple shares have climbed by more than 1,400%, while the S&P 500 (SPY) has risen by about 430% during the same time. Even so, analysts at LightShed say this may be the right moment for a major change in leadership. In their view, Tim Cook was a great choice for the past, but with the COO leaving and AI reshaping industries, Apple may now need someone new to lead it into the future.
Is Apple a Buy or Sell Right Now?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on AAPL stock based on 15 Buys, 10 Holds, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average AAPL price target of $228.29 per share implies 8.1% upside potential.
