Investing.com -- {{0|Piper Sandler}} analysts said in a note Friday that Apple (NASDAQ:AAPL)'s latest technology, Apple Intelligence, will not trigger a super cycle in handset demand during the 2024 holiday season.
As a result, the firm believes it limits the potential upside for companies within the radio frequency (RF) supply chain.
"We do not believe that Apple Intelligence will drive a handset super-cycle in 2024," {{0|Piper Sandler}} wrote, indicating tempered expectations for iPhone-related growth.
The analysts emphasized that the release of the new iPhone lineup is unlikely to provide a significant boost to RF names in their coverage.
Rather than a surge in demand, {{0|Piper Sandler}} forecasts "largely seasonal to slightly below seasonal upturns" for the holiday period.
This subdued outlook aligns with feedback from management teams, according to the firm.
The note also situates Apple's developments within the broader semiconductor landscape. {{0|Piper Sandler}} highlighted that while AI compute is expected to drive growth in semiconductor markets, analog and mobile-oriented names are likely to underperform.
The firm remains neutral on RF and analog companies, suggesting that these segments won't benefit meaningfully from Apple's latest product cycle.
While Apple Intelligence introduces new features, {{0|Piper Sandler}} believes it does not appear poised to generate a transformative shift in iPhone demand during the critical holiday season.
In terms of stocks in the semiconductor sector, Piper Sandler said it continues "to see most upside for the compute names while we remain neutral on most of analog and RF names."