Wedbush Securities analyst Dan Ives has raised his Apple (AAPL) price target by $50, believing that the iPhone maker is entering a golden age as AI witnesses more consumer adoption.
In a new CNBC interview, Ives says Apple is poised to extract charges from the consumer use of AI chatbots like ChatGPT, Gemini and Claude.
According to Ives, the setup indicates that the iPhone maker is primed to see its revenue grow by billions of dollars every year.
“But it really starts what’s going to be the foundation for consumers. They’re going to be using AI when it comes from an iPhone perspective. This is going to be the consumer AI revolution. What ultimately will be subscription services, apps, and as they get a piece of the pie, that’s going to be an incremental $10, $12, $15 billion annually on the services side. I think this finally starts now the AI chapter at Apple.”
In late March, reports emerged that Apple had plans to open Siri to third-party AI assistants, allowing the tech giant to generate additional revenue from subscriptions processed through the App Store. Apple typically charges a 30% commission on app sales and in-app purchases.
Ives says he is raising his price target for AAPL from $350 to $400, believing that Apple will be the toll collectors for consumers using AI on their iPhone.
“This next iOS and everything from a developer perspective, this is finally it in terms of Apple intelligence, Siri AI. They’re now going to have the ability, whether it’s Gemini, whether it’s ChatGPT, this will now be the foundational piece. It’s very important because I think what investors are underestimating is that this will be an AI-enabled device, probably in 2027… Think about them like on this highway. They’re going to be the toll collectors for consumers on AI.”
As of Friday’s close, AAPL is trading at $293.
Disclaimer: Opinions expressed at CapitalAI Daily are not investment advice. Investors should do their own due diligence before making any decisions involving securities, cryptocurrencies, or digital assets. Your transfers and trades are at your own risk, and any losses you may incur are your responsibility. CapitalAI Daily does not recommend the buying or selling of any assets, nor is CapitalAI Daily an investment advisor. See our Editorial Standards and Terms of Use.