Apple (AAPL) is expected to finally enter the Artificial Intelligence Revolution in 2026 amid the tech giant's AI strategy and AI leadership change, while experiencing strong momentum in iPhone 17 sales into the end of 2025, Wedbush Securities said in a Sunday note.
The brokerage noted that Apple is likely to unveil an expanded AI partnership with Alphabet (GOOG, GOOGL) unit Google's Gemini, a move viewed as potentially game-changing, which could make Gemini the exclusive AI partner for Apple, possibly announced in early 2026.
With the upcoming AI monetization strategy, Wedbush predicts an additional $75 to $100 per share of value for Apple's stock over the next years.
Wedbush also highlighted strong iPhone 17 sales, including solid performance in China, positioning Apple to exceed growth expectations for the December holiday quarter, according to the report.
Apple has overhauled its AI leadership, with longtime AI Chief John Giannandrea departing and noted AI researcher Amar Subramanya, formerly at Microsoft (MSFT) and Google DeepMind, joining the team. The firm expects Chief Executive Tim Cook to remain in his role at least until 2027 to guide Apple through this AI technology transition.
Wedbush maintained an outperform rating on the stock and raised its price target to $350 from $320.
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