Wedbush raised the price target on Apple’s (AAPL) stock to $350 from $320 while maintaining its Outperform rating on the shares.
Apple also remains on the IVES AI 30 (IVES) winner list
“We are raising our price target from $320 to $350 given our view that 2026 is going to finally be the year that Apple actually enters the AI Revolution. We also believe iPhone 17 sales have been trending well into year-end including in the China region as Apple continues to execute above Street growth expectations for the December quarter with a healthy holiday season ahead,” said analysts led by Dan Ives.
The analysts added that Apple has finally started to turn the corner on outlining a comprehensive AI strategy over the coming year and it starts with new leadership on this key area for the company. The analysts noted that big moment of truth is when Apple formally announces a partnership with Alphabet’s (GOOG) (GOOGL) Google Gemini on the AI front in early 2026 which they expect to be a game changer for both companies going forward.
“The elephant in the room remains the invisible AI strategy, with the biggest consumer installed base in the world of 2.4 billion iOS devices and 1.5 billion iPhones, the time is now for Apple to accelerate its AI efforts,” said Ives and his team.
The analysts believe the AI monetization piece could add $75 to $100 per share to the Apple story over the coming few years.
“We also believe Tim Cook will remain CEO of Apple through at least the end of 2027 to see Apple through this key AI technology transition in Cupertino,” the analysts added.
Last week, Apple announced that John Giannandrea, senior vice president for Machine Learning and AI Strategy, would step down from his position and will serve as an advisor to the company before retiring in the spring of 2026. He will be replaced by AI researcher Amar Subramanya, who will join Apple from Microsoft (MSFT). Subramanya also worked at Google for 16 years, working his way up from a staff research scientist to vice president of engineering, where he helped develop the AI assistant Gemini.
“We believe that Subramanya represents the right hire at the right time with the clock ticking on Apple’s AI strategy heading into next year with outside hires a necessary move to improve the AI strategy with a new culture and DNA driving these efforts in Cupertino,” said Ives and his team.
The analysts believe no “AI premium” is factored into Apple’s stock at current prices which makes it a compelling large-cap tech name to own into year-end and 2026.
“We believe there is a major reset on AI with more outside hires from Cook & Co. to get Apple on the right track when it comes to AI while further preparing the company for its AI Siri launch by mid 2026,” said Ives and his team.