Apple has run into a small barrier along the path to its AI-driven future. Bank of America lowered its price target on Wednesday, moving from $250 to $240 on the Apple stock, reflecting increasing anxiety among investors. The downgrade is due to growing investor concern over delays to Apple’s AI-powered Siri upgrade, along with rising supply chain costs that have been provoked, to an extent, by disruptions stemming from tariffs.

Regardless of the decrease in price target, BofA retained its Buy rating with the thought that Apple has “resilient earnings, further improving gross margins, and strong capital return.” On the other hand, the analysts did express their concern regarding the obvious, Siri missing from the AI spotlight.

Delayed AI Launch May Hurt Upgrade Cycles

It was expected that the newly improved and generative AI enabled Siri would form the backbone of Apple’s iPhone upgrade cycle. However, BofA indicates that the delay would depress consumer excitement and postpone upgrades.

Analysts noted,

“Apple’s launch of AI-enabled Siri has been delayed, which can cause further push out of iPhones upgrades.”

That has led the firm lowering its 2026 estimate of earnings per share (EPS) from $8.20 to $7.82. Also reduced was Apple’s fiscal 2026 revenue projection, cut from $450 billion to $440 billion.

Tariffs and Supply Chain Disruptions

Other than AI delays, Apple is increasingly struggling in terms of supply chain complexities. Tariffs are further causing rising costs, thus adding another level of uncertainty to Apple’s long-term revenue outlook. The analysts stated,

“Tariffs create near-term volatility. The price target was updated using a slightly lower multiple of 29x 2026 earnings, as opposed to the previous 30x, to account for higher uncertainty around tariffs.”

Future Offerings

Still, the news isn’t all bad. BofA views the weakening U.S dollar as a potential tailwind in the June quarter that could boost revenues and margins. Looking further, the evolution of new products could lead towards sustenance yet again. The report stated,

“Starting in the June quarter, we anticipate the weaker US dollar to help drive upside to revs and margins.”

It is anticipated that the iPhone “Air” will be launched by Apple in September 2025, followed by the foldable version in September 2026. These emerging patterns could boost replacement demand and rejuvenate consumer interest.

While BofA’s cutout reflects some fair caution, Apple’s customer loyalty, a strong ecosystem, and a forward-looking product line are key determinants in the crowded tech landscape. BofA still stands by the company’s long-term fundamentals, even as Apple’s short-term performance is affected by AI delays and macroeconomic challenges. Investors will closely monitor the speed with which Apple rolls out its AI initiatives and whether upcoming hardware launches can rekindle the iPhone cycle. For the moment, the stock may face further bumps before it can start soaring again.