Morgan Stanley Report Boosts Outlook for Several Holdings

While off their highs of the day, Apple AAPL shares are up following a very supportive research note published by Morgan Stanley MS and the extended iPhone upgrade cycle we’ve discussed with you. 

Citing its annual AlphaWise Smartphone Survey, the firm says it sees an improving outlook for iPhone upgrade rates in the coming quarters and into 2026. Our thinking has been, and continues to be, that as Apple releases future iterations of its operating systems, including iOS, throughout 2025 and into 2026 we could see the pace of iPhone upgrades accelerate over time.

Adding to our thinking that this extends into 2026 was a report over the weekend that Apple will debut an updated Siri voice assistant next year and plans to introduce it to consumers in 2026. With that in mind, Morgan’s findings that global iPhone upgrades could reach 271 million to 313 million units in Apple’s fiscal 2026 compared to Morgan’s previous fiscal 2026 forecast of 258 million iPhones. Those indicated volumes would also be positive demand drivers for Qualcomm QCOM and Universal Display OLED.

In last Friday’s Monthly Roundup, we pointed out the next two catalysts we’ll be watching for AAPL shares: November monthly revenue data from Taiwan Semiconductor TSM and the reception to the release of Apple’s iOS 18.2, which brings a richer set of Apple Intelligence features to market. Included among them are ChatGPT integration and Apple’s AI image generator, Playground. We’ve played with both and found the update far more compelling than what debuted in iOS 18.1 in late October. 

More Pro Portfolio

• We're Taking Advantage of Prices by Buying More Shares of Three Holdings
• Monthly Roundup: November Shaping Up Good for Market, Even Better for Portfolio
• Updating Our Table for Panic, Potential Pickup Points

At the time of publication, TheStreet Pro Portfolio was long AAPL, MS, QCOM and OLED.