Wedbush Securities analyst Dan Ives said Apple is entering an aggressive growth phase as its artificial-intelligence initiatives finally begin.
This shift represents a critical turning point for the company's valuation. If Apple successfully integrates AI across its ecosystem, it could trigger a massive hardware upgrade cycle and create new revenue streams that diversify its income beyond the iPhone.
Speaking during CNBC’s “Closing Bell” broadcast, Ives said, "The AI chapter is finally underway." He said the company is a "sleeping giant with a major AI catalyst" [3]. The analyst's view suggests that Apple's perceived delay in the AI race may have been a strategic positioning phase rather than a lack of capability.
Ives provided a significant valuation for these efforts, saying that Apple's AI alone could be worth $1.5 trillion [1]. This figure underscores the scale of the opportunity if the company can leverage its massive installed base of users to deploy generative AI tools at scale.
Because of this growth potential, Ives has set a price target of $400 per share for Apple stock [2]. This target reflects a bullish outlook on the company's ability to monetize AI through its software and services divisions, a move that would solidify its market position against other tech giants.
The analyst's assessment comes as the tech industry continues to pivot toward generative AI. While competitors have released standalone tools, Apple's strategy focuses on deep integration within its existing operating systems to ensure a seamless user experience.
“The AI chapter is finally underway.”
Apple's transition into an 'aggressive' AI phase suggests the company is moving from research and development to active commercialization. By targeting a $400 share price and valuing the AI segment at $1.5 trillion, Wedbush is signaling that Apple's ecosystem advantage may outweigh the first-mover advantage held by competitors, potentially shifting the market's valuation of the company from a hardware manufacturer to an AI-services powerhouse.
