So, Apple Inc. (AAPL) just dropped a bunch of new hardware. But here's the thing: this isn't just another spec bump. The real story, according to Wedbush analyst Dan Ives, is that this launch is all about AI, and it could be the catalyst that sends the stock about a third higher.
Ives is sticking with his $350 price target, which suggests roughly 33% upside from where the stock is trading now. The logic? This new wave of devices might finally kick off that big upgrade cycle everyone's been waiting for.
The Brains of the Operation
The biggest leap forward is under the hood. Apple's new M5 Pro and M5 Max chips are built on something called a Fusion Architecture. Think of it as smooshing two dies into one system-on-chip that packs the CPU, GPU, a neural engine, and unified memory all together.
According to Ives, these chips are a monster for AI work. They deliver over four times the peak GPU compute for AI compared with the previous M4, plus about 35% stronger graphics performance in general. The M5 Pro supports up to 64GB of that unified memory, while the M5 Max goes all the way up to 128GB. That's a lot of headroom for running AI models without constantly hitting the memory wall.
More Macs, Including a Surprise
Of course, you need something to put those chips in. Apple refreshed its MacBook Air and MacBook Pro lines, but the interesting move was the MacBook Neo. Priced at $599 (or $499 for education), it's aimed squarely at budget buyers.
Even at that price, it's not a slouch for AI. It runs on an A18 Pro chip with a 16-core Neural Engine, which Apple says delivers three times faster on-device AI performance. Ives sees this as a smart play to broaden the Mac user base, noting that nearly half of Mac buyers are still new to the platform. That's a lot of potential growth still on the table.
And Don't Forget the Phone
The AI push isn't just for computers. Apple also introduced the iPhone 17e, powered by the new A19 chip designed to run generative AI models more efficiently. Starting around $599 with 256GB of storage, it brings more AI capability to the entry-level part of Apple's phone lineup.
So, what's the takeaway from all this new metal and silicon? For Ives, it's pretty straightforward. Apple is methodically building out an entire ecosystem of devices that are seriously capable of handling AI workloads. From a budget laptop to a pro machine to a more affordable phone, they're covering the bases. If consumers and developers bite, this could very well be the setup for the next big hardware cycle—and that $350 stock price target starts to look a lot more realistic.
