AI monetization could expand through AI-as-a-service models and stronger large-language-model partnerships, potentially boosting Services revenue and making Apple a toll booth for AI-enabled experiences.

Apple is the focal point of a bullish AI-driven thesis after Evercore ISI lifted its price target to $325, anchored by optimism around Siri upgrades and broader AI initiatives slated for 2026.

The broader context includes potential AI-friendly expansions into wearables and AR/VR (Vision Pro), with regulatory factors in the U.S. and Europe potentially shaping app store dynamics.

The upgrade reflects expectations that Apple’s AI strategy—encompassing Siri, AI infrastructure, hardware/software synergies, and potential new revenue streams—will lift services and overall valuation.

Evercore’s thesis rests on a comprehensive AI plan: hardware refreshes, software improvements, data-center and chip investments, and opportunities for third-party apps and developer tools.

The bull case envisions AI-driven monetization boosting Services revenue and expanding App Store ecosystem engagement, supporting longer-term valuation growth.

Siri 2.0 is expected to lift user engagement and could spur iPhone upgrades and Services revenue by 2026.

Apple’s AI roadmap includes features like Apple Intelligence and deeper AI integrations, with potential progress toward advanced capabilities comparable to rival Gemini by spring 2026.

Market sentiment remains positive about AI-driven growth, though some analysts warn of regulatory and supply-chain risks.

Apple’s closed ecosystem is seen as a competitive edge versus peers like Microsoft and Alphabet, while concerns persist about data privacy, regulatory scrutiny, and chip supply constraints.

groundwork is being laid for broader third-party AI integration, including support for Model Context Protocol to enable external AI tools to interact with apps, akin to Siri’s App Intents.

Siri 2.0, fueled by Gemini, aims to enable multi-modal interactions with a focus on security and privacy, leveraging on-device and Apple server data handling.