Morgan Stanley has stated that Apple's decision to cancel its electric vehicle project could potentially increase the importance of areas such as generative artificial intelligence. The bank maintains an "overweight" rating on Apple with a latest target price of $220. Reports suggest that Apple spends $1 billion annually on this project, which could also enhance the company's operating leverage. Analysts point out that over the past three years, Apple's gross margin has increased by approximately 230 basis points, but its operating profit margin remains flat.