Apple (AAPL) was in the spotlight on Tuesday as Wedbush Securities said the recent sell-off in the stock is “unwarranted,” and 2026 is the year the iPhone maker firmly plants its artificial intelligence flag.
“Apple’s stock has sold off the last few weeks with worries that some of the much anticipated AI features will be delayed with Siri AI after investors have endured this soap opera over the last year with Cupertino’s lack of AI strategy,” analysts led by Dan Ives wrote in a note to clients. “That said, we believe this recent worry and sell-off in Apple’s shares is unwarranted as the focus is [on] Apple getting its AI strategy right and releasing its advanced AI features by the summer timeframe and that still appears on target. While features could come in various releases of iOS 26.4/26.5 and eventually iOS 27 in September the name of the game for [Tim] Cook and Apple is building out its much anticipated AI platform for developers and consumers in 2026.”
The analysts have an Outperform rating and $350 price target on Apple.
Delving deeper, the analysts acknowledged that investors may be a bit “snake bitten,” given Apple’s missteps when it comes to AI. However, recent announcements – including the Google (GOOG) (GOOGL) deal and new outside leadership – along with the belief that Apple management knows it has to get the revamped Siri right, gives the investment firm confidence.
“The AI missteps last year ultimately now represent the opportunities for Cupertino to unveil its Siri AI platform in 2026…and the Street is significantly underestimating what this will mean for the Apple story going forward in our view,” the analysts added. “The elephant in the room remains the invisible AI strategy, with the biggest consumer installed base in the world of 2.5 billion iOS devices and 1.5 billion iPhones, the time is now for Apple to accelerate its AI efforts. We believe the AI monetization piece could add $75 to $100 per share to the Apple story over the coming few years as it finally plays out in 2026.”