Apple is lifting its price target to 400 and keeping an Outperform rating as Wedbush argues a new growth phase is driven by artificial intelligence, setting the stage for AI-enabled momentum.

Analyst Dan Ives predicts WWDC in June will unveil Apple’s AI roadmap, with iOS 27 becoming the gateway for 2.5 billion iOS users to access multiple AI models (Google Gemini, OpenAI ChatGPT, Anthropic Claude) as defaults.

The monetization of AI and related services could add about $15 billion in annual revenue over time, reinforcing Apple’s role as a consumer AI hub for its global user base.

Valuation sits in the mid-30s for the price/earnings multiple, but investors are watching risks such as rising memory costs, regulatory pressure, and leadership change as Tim Cook shifts to executive chairman and John Ternus becomes CEO on September 1.

Risks cited include execution on AI features, regulatory hurdles in China and the EU, and broader macroeconomic pressures on consumer spending.

New CEO John Ternus is viewed as a strong fit to sustain Apple’s hardware and innovation trajectory, including foldable devices and wearable form factors like Apple Glasses.

Ternus’ leadership is seen as critical to a hardware/software strategy that features a foldable iPhone, an AI-capable iPhone around 2027, and a lower-priced Apple Glasses variant, with near-term focus on a coherent software/AI strategy at WWDC.

Current stock valuation implies roughly 33x the 2026 earnings estimate.

The upgrade follows prior 2025 tariff-related cuts and a December rebound, signaling renewed bullish sentiment on Apple.

MacDailyNews remains skeptical of short-term dips but underscores ongoing optimism about Apple’s AI-driven growth trajectory.

Anticipated significant iPhone redesigns around its 20th anniversary in 2027 could align hardware inflection with AI initiatives.

Guidance points to Q3 revenue growth of 14%–17%, with product lines like iPhone 17 featuring neural accelerators and M5/M2-based devices emphasizing on-device AI.