Wedbush analysts raised their price target on Apple Inc. (AAPL) from $350 to $400 on Friday, keeping an Outperform rating. The firm believes Apple is a "sleeping tech giant" on the verge of a major growth inflection point, driven by what they call a "new AI age" coming to Cupertino.
According to Wedbush, about 20% of the world's population will access AI through Apple devices. The analysts expect Apple to become the "consumer hub of AI" technology, and this shift could generate $15 billion in additional annual services revenue. "We believe AI monetization and services will ultimately add $75 to $100 to Apple stock," the analysts noted in the Friday report. That value, they say, is not yet reflected in the current stock multiple.
The upcoming Worldwide Developers Conference in June is the first step in Apple's foundational AI platform. Wedbush expects users to integrate Google's Gemini model into the hardware ecosystem. More importantly, iOS 27 will reportedly allow 2.5 billion users to set preferred AI models as defaults. This open approach includes support for providers like OpenAI's ChatGPT and Claude. Analysts see this leading to hundreds of AI-driven apps across health, finance, and lifestyle sectors.
The report also highlights a leadership transition from Tim Cook to John Ternus. Wedbush describes Ternus as a "thought leader" who understands the "Apple DNA." Analysts believe the "era for Ternus" will focus on hardware innovation, including foldable phones, AI-enabled smartphones, and affordable Apple Glasses. Innovation under Ternus will define the company's future success.
Apple's partnership with Alibaba Group Holding Limited (BABA) remains vital for the China market. Wedbush views this as an incremental step toward an AI-enabled iPhone. A significant redesign is likely for the 20th-anniversary edition in 2027. "We see a golden path ahead for Apple in this AI era," the analysts concluded.
Apple shares were up 1.76% at $292.50 at the time of publication on Friday, trading at a new 52-week high.
