Apple (AAPL) Stock: Analysts Increase Price Target as AI Revolution and iPhone Sales Accelerate

TLDR

• Wedbush analysts increased Apple’s price target from $320 to $350, citing the company’s upcoming AI strategy and strong iPhone 17 sales momentum.
• Apple plans to partner with Google Gemini in early 2026, which could unlock $75-$100 per share in AI monetization value.
• New AI chief Amar Subramanya joins from Microsoft with 16 years of Google experience developing Gemini.
• iPhone 17 sales are exceeding expectations in key markets including China during the December quarter.
• No AI premium is currently reflected in Apple’s stock price, making it attractive for investors according to Wedbush.

Wedbush Securities bumped its price target for Apple stock to $350 from $320. The firm kept its Outperform rating intact as it sees 2026 becoming the breakthrough year for Apple’s AI strategy.

Apple Inc., AAPL

Lead analyst Dan Ives points to two major drivers behind the upgrade. iPhone 17 sales are tracking ahead of Wall Street forecasts. The AI strategy is finally taking shape after months of investor concerns.

China sales are holding up better than feared. The December quarter looks strong with holiday demand coming in healthy. Apple continues to outperform growth expectations in its largest markets.

AI Partnership Set to Unlock Value

The game-changing moment arrives in early 2026 when Apple announces its Google Gemini partnership. Wedbush expects this collaboration to transform both companies’ AI capabilities.

Apple sits on a goldmine with 2.4 billion iOS devices and 1.5 billion iPhones worldwide. Yet the AI strategy has remained the “elephant in the room” for too long. That’s about to change.

The monetization potential from AI features could boost Apple’s valuation by $75 to $100 per share. This upside isn’t priced into the stock yet, creating an opportunity for investors.

Fresh Leadership Brings Silicon Valley Experience

Apple made waves with its leadership reshuffle. John Giannandrea is stepping down as senior vice president for Machine Learning and AI Strategy. He’ll advise the company before retiring in spring 2026.

Amar Subramanya takes the reins. He’s coming from Microsoft but spent 16 years at Google climbing to vice president of engineering. He helped build the Gemini AI assistant that Apple will soon partner with.

Wedbush calls Subramanya the right hire at the right time. Outside talent brings fresh perspective and culture to jumpstart Apple’s AI efforts. The company needs different DNA to compete effectively.

Tim Cook stays as CEO through at least late 2027. This gives him runway to steer Apple through its biggest technology shift in years. The AI-powered Siri launches by mid-2026.

Stock Offers Value Without AI Premium

Here’s the kicker. Apple stock trades with zero AI premium baked in at current levels. Competitors with weaker AI stories command higher valuations on AI potential alone.

This makes Apple a compelling buy for large-cap tech investors. The stock sits at $278.78 with a PE ratio of 37.38. The 52-week high of $288.62 isn’t far off.

Wedbush expects more outside hires coming. Cook and his team recognize they need Silicon Valley’s best AI minds. The culture shift has begun but more changes are coming.

Apple remains on the IVES AI 30 winner list. The firm sees the pieces falling into place for a major 2026 catalyst year. iPhone sales provide the foundation while AI strategy builds the future.

The December quarter results will show whether the iPhone 17 momentum continues. China performance matters most as Apple battles local competition. Early signs point to better-than-expected results across regions.

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