Apple shares experienced a challenging start to the year, declining nearly 9 per cent earlier this month. However, Wedbush Securities analyst Dan Ives believes this drop is “unwarranted,” dismissing concerns surrounding Apple’s artificial intelligence (AI) strategy. Apple designs, develops, and sells consumer electronics, computer software, and online services. The company’s hardware products include the iPhone, iPad, Mac, AirPods, and Apple Watch.
Ives suggests that previous AI missteps present future opportunities for Apple to unveil its Siri AI platform in 2026. He argues that the market is underestimating the potential impact of this development on Apple’s overall valuation. Ives believes the integration and monetisation of AI could significantly boost Apple’s stock price in the coming years.
According to Ives, Apple’s substantial installed base of 2.5 billion iOS devices, including 1.5 billion iPhones, creates a prime opportunity to accelerate AI initiatives. He estimates that successful AI monetisation could add $US75 to $US100 per share to Apple’s value as the strategy unfolds in 2026.
Ives has reiterated an outperform recommendation for Apple with a price target of $US350. As of 3.09pm in New York (7.09am AEDT), Apple shares were trading 3.8 per cent higher at $US265.13, reflecting renewed investor confidence.
