Apple (AAPL) Stock: Wall Street Analysts See Major Upside as AI Plans Unfold

TLDR

• Wedbush analyst Daniel Ives projects Apple stock could reach $350 by 2026, a 28% gain from current $273 levels
• Morgan Stanley increases price target to $315, up from $305, based on pricing power and AI investments
• iPhone 17 sales outperform Wall Street expectations in December quarter, showing strength in China
• Google Gemini partnership set for early 2026 could add $75-$100 per share in AI monetization value
• Tim Cook staying as CEO through 2027 to lead AI transition with new senior VP Amar Subramanya

Apple trades at $273 per share, sitting 5% below its December 3 peak of $288.61. Two top Wall Street firms just raised their price targets on the stock.

Apple Inc., AAPL

Wedbush’s Daniel Ives sees shares hitting $350 within twelve months. Morgan Stanley lifted its target to $315 from $305. Both analysts cite Apple’s AI strategy as the key catalyst.

The stock is up 9.8% year-to-date. Ives ranks as a five-star analyst on TipRanks, sitting at #372 out of 10,202 tracked analysts. His Apple calls have generated 15.43% average returns with 84% success rate.

Strong iPhone Sales Drive Optimism

iPhone 17 sales are crushing Wall Street estimates heading into the December quarter. The momentum extends to China, where Apple has faced pressure recently.

Ives attributes this performance to what he calls an “invisible AI strategy.” The foundation is Apple’s install base of 2.4 billion iOS devices. That includes 1.5 billion iPhones worldwide.

Morgan Stanley expects Apple to implement 5% price increases to offset rising memory costs. The firm now projects FY27 earnings per share of $9.83, up from $9.55 previously.

Gross margins will compress by 130 basis points due to higher component costs. But revenue gains from price hikes should more than offset that pressure.

Morgan Stanley’s $315 target applies a 32x multiple to those FY27 earnings. The firm rates Apple Overweight with 14% risk-adjusted upside potential.

AI Partnership and Executive Moves

Apple will launch a formal partnership with Google Gemini in early 2026. Ives estimates this AI monetization could boost Apple’s value by $75 to $100 per share over the coming years.

The company recently appointed Amar Subramanya as senior vice president for machine learning and AI strategy. Ives views this as a critical hire for Apple’s AI transformation.

CEO Tim Cook intends to remain through at least 2027. This timeline allows him to oversee the AI transition and the planned mid-2026 Siri relaunch.

Wall Street Consensus

Apple holds a Moderate Buy consensus rating. The rating reflects 20 Buy recommendations, 10 Holds, and two Sells from analysts.

The average price target across Wall Street sits at $299.49. That implies 9.4% upside from current levels.

Morgan Stanley maintains confidence in Apple’s ability to raise prices. The firm expects AI investments to deliver returns as new features roll out in 2026.

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