Wedbush is pushing back against what it calls an overreaction in Apple shares, saying the recent drop in the stock is "unwarranted." In a Tuesday note, analyst Dan Ives told investors that concerns about potential delays to Apple’s artificial intelligence rollout - especially around Siri AI - have weighed on the stock in recent weeks.
Ives framed the selloff as driven by worries that "much anticipated AI features will be delayed with Siri AI" following what he described as a year-long "soap opera" over questions about Apple’s strategy. Despite that backdrop, Wedbush argued investors should focus on execution, saying the priority is Apple "getting its AI strategy right."
The firm maintained that advanced AI capabilities slated for this summer "still appear on target." Ives emphasized that the current trajectory is "way different" from last year’s missteps, pointing to several strategic developments: a partnership with Google Gemini, the appointment of new external AI leadership, and an internal recognition that the updated Siri architecture represents one of the most consequential technology rollouts in the company’s history.
"The time is now for Apple to accelerate its AI efforts," Wedbush wrote, underscoring the firm’s view that Apple is moving decisively to address prior shortcomings.
Wedbush also highlighted the scale of Apple’s ecosystem as a key factor in judging future AI impact. The note cited an installed base of 2.5 billion iOS devices and 1.5 billion iPhones, and said the market is "significantly underestimating" the potential of the planned Siri AI platform, which is expected in 2026.
On the financial side, Wedbush estimated that AI monetization could add between $75 and $100 per share over coming years. The firm further described developers and consumers as "waiting patiently" for an enhanced Siri release targeted for spring, labeling that update "Apple’s answer to ChatGPT and Perplexity." An AI-driven subscription service is anticipated by the autumn, according to the note.
In light of these views, Wedbush reiterated its outperform rating on Apple and maintained a $350 price target.
Key points
- Wedbush says the recent Apple share-price decline is "unwarranted," driven by overstated concerns over AI rollout timing.
- The firm points to strategic moves - including a Google Gemini partnership and new external AI leadership - and stresses that advanced features planned for summer remain on track.
- Wedbush estimates AI monetization could add $75 to $100 per share and keeps an outperform rating with a $350 price target; Apple’s large installed base is cited as a major advantage.
Risks and uncertainties
- Potential delays to Siri AI features remain a market concern and could continue to pressure investor sentiment if timelines slip - impacting technology and consumer device sectors.
- The market may be mispricing the timing or magnitude of Siri AI adoption, creating uncertainty around near-term monetization assumptions - relevant to software services and subscription businesses.
- Execution risk around rolling out a fundamentally revamped Siri architecture could affect user experience and developer uptake if not implemented as expected - with implications for app ecosystems and device engagement.