Apple stock rose about 0.8% on Friday after Wedbush Securities delivered a strong bullish note, lifting its price target from $350 to a new Street-high of $400. The move underscores growing Wall Street confidence in Apple’s ability to capitalize on artificial intelligence as a major growth driver.
Wedbush analysts, led by veteran tech watcher Daniel Ives, believe Apple is uniquely positioned to become a dominant consumer hub for AI technology. With its massive installed base of devices, the firm estimates that nearly 20% of the global population could eventually access AI tools through Apple products.
In their note, the analysts highlighted several key opportunities:
• AI Services and Storage Monetization: Apple could generate an additional $15 billion in annual services revenue by charging for advanced AI features and expanded cloud storage. This would further boost the company’s already high-margin services business.
• China Strategy: Despite regulatory scrutiny, Apple’s partnership with Alibaba on AI is expected to help it tap into its large and growing user base in China.
• The 2027 iPhone Moment: Wedbush points to significant iPhone redesigns expected in 2027 — coinciding with the 20th anniversary of the original iPhone — as a major catalyst for an “AI-enabled” device that could drive a new upgrade supercycle.
“We believe over the next few years Apple will be able to monetize the AI Services and storage features… as it starts to become the ‘consumer hub of AI’ technology for its global user base.” — Wedbush analysts
Broader Context for Investors
Apple has faced questions in recent quarters about iPhone sales growth and competition in AI from players like OpenAI, Google, and Microsoft. However, the company has been steadily integrating Apple Intelligence features across its ecosystem, and investors appear encouraged by the potential for meaningful revenue upside from these tools.
The new $400 target represents substantial upside from recent trading levels and reflects optimism that AI will not only defend Apple’s premium positioning but actively expand its services empire.
What This Means for Apple Stock
• Positive Catalyst: Analyst upgrades to Street-high targets often help sentiment and can attract momentum buyers.
• Valuation: At $400, the stock would trade at a premium multiple, but Wedbush’s thesis hinges on durable services growth rather than just hardware.
• Risks: Execution on AI features, regulatory hurdles (especially in China and the EU), and broader macroeconomic pressures on consumer spending remain watchpoints.
MacDailyNews Take: As we wrote last spring:
“Sub-$170 AAPL seems like an absolute gift to us.” — MacDailyNews, April 8, 2025
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Let’s AAPL rallying to $350 first before $400.