Apple's (AAPL) AI initiative — dubbed "Apple Intelligence" — is allowing it to play in the tightening tech race by adopting and integrating artificial intelligence features in its devices. But are there still risks within this strategy that has pushed the tech sector to new heights?

MoffettNathanson initiated coverage on the iPhone maker with a Neutral rating and $211 per share price target. Apple stock currently sits above $226 at the time of this video's posting.

MoffettNathanson research analyst Clay Griffin — the analyst behind the call — finds Apple's relationship with consumers "unparalleled" but states it is "hard to really capitalize a catalyst for an upgrade to a new hardware and also price in a subscription service in the same breath."

Griffin cites Google's (GOOG, GOOGL) search antitrust ruling as another headwind Apple must eventually face.

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This post was written by Luke Carberry Mogan.