Apple shares close lower on Wednesday, tech giant ties up with TSMC over micro OLED display development

According to a Wednesday report by Nikkei Asian Review, Apple Inc (AAPL) has tied up with Taiwan Semiconductor Manufacturing Co (TSMC) over the development of micro OLED displays, which the tech giant intends to use in its next augmented reality devices.

Apple shares closed lower for a second consecutive trading session on NASDAQ on Wednesday. The stock went down 0.46% ($0.62) to $135.39, after touching an intraday low at $134.46, or a price level not seen since February 3rd ($133.61).

Shares of Apple Inc have risen 2.03% so far in 2021 compared with a 4.09% gain for the benchmark index, S&P 500 (SPX).

In 2020, Apple’s stock went up 80.75%, thus, it outperformed the S&P 500, which registered a 16.26% gain.

Micro OLED displays are much thinner, smaller in size and less power-consuming, which makes them more appropriate for use in wearable augmented reality devices. The displays being developed have a size of less than 1 inch, the report stated.

At present, Apple’s micro OLED project with Taiwan Semiconductor Manufacturing Co is at the trial production stage, while mass production is expected to be achieved within several years, Nikkei Asian Review also said.

Analyst stock price forecast and recommendation

According to CNN Money, the 37 analysts, offering 12-month forecasts regarding Apple Inc’s stock price, have a median target of $155.00, with a high estimate of $175.00 and a low estimate of $83.00. The median estimate represents a 14.48% upside compared to the closing price of $135.39 on February 10th.

The same media also reported that at least 24 out of 41 surveyed investment analysts had rated Apple Inc’s stock as “Buy”, while 9 – as “Hold”. On the other hand, 2 analysts had recommended selling the stock.