Wall Street strategist Dan Ives says Apple (AAPL) is finally positioned to enter the AI revolution in a meaningful way, laying out four catalysts he believes could push the stock toward Wedbush’s price target.
In a new note, the Wedbush analyst says the firm is very bullish on Apple this year as AI becomes central to its product strategy, services growth and iPhone cycle.
Ives says the first major driver is Apple’s expected partnership with Google around Gemini, which he believes will serve as the backbone of the iPhone maker’s consumer AI push.
“We believe Google Gemini will be the exclusive partner for Apple’s AI strategy, and now that road is paved with the Google DOJ win. The Street is waiting for a formal flagship partnership on AI as the consumer AI revolution goes through Apple Park. 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 to accelerate its AI efforts.”
The second catalyst, according to Ives, is the long-awaited overhaul of Siri, which he expects to arrive in the coming months.
“Developers and consumers are waiting patiently for the release of the new and improved Siri in the March or April timeframe. This personal assistant will be Apple’s answer to ChatGPT and Perplexity, among other large language models. We would expect an AI-driven subscription service to be launched and unveiled to Apple’s unrivaled consumer installed base this summer.”
Ives also points to the iPhone cycle as a key pillar of his bullish outlook.
“We believe rising average selling prices (ASPs) and the introduction of a foldable phone likely during the September iPhone 18 product cycle will be key. We would expect ASPs to increase by roughly $100 on iPhone 18 Pro and Pro Max models given rising global production costs, which has become a concern from a product gross margin perspective.”
The final catalyst, he says, centers on leadership continuity.
“There is growing chatter around Hall of Fame CEO Tim Cook leaving his perch as CEO of Apple over the coming year. We disagree with this narrative and believe Cook will be CEO of Apple at least through the end of 2027, as this remains an integral period for Cupertino to design and execute its broader AI revolution strategy.”
According to Ives, the four catalysts could send AAPL toward the firm’s price target of $350. At time of publishing, AAPL is trading at $259.
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