Wedbush, the US investment bank, has raised its price target on Apple from $350 to $400 and called the iPhone maker "the sleeping tech giant" of the artificial intelligence revolution, arguing that the company's upcoming WWDC developer conference in June will mark a decisive inflexion point for the stock.
Analyst Dan Ives, one of the most prominent Apple bulls on Wall Street, said in a research note published today that AI monetisation and services could ultimately add $75 to $100 to Apple's share price, a premium he believes is not reflected in the current multiple.
Apple shares closed at $287.44, giving the company a market capitalisation of $4.2 trillion.
The note centres on iOS 27, the next major software update expected to be unveiled at WWDC, which will allow Apple's 2.5 billion iOS users to choose their preferred AI model as the default for Apple Intelligence features.
Rather than relying solely on its own in-house AI capabilities, Apple is opening its platform to third-party providers, including Google's Gemini, OpenAI's ChatGPT and Anthropic's Claude, letting users route Siri queries, Writing Tools and other system-level features to whichever model they prefer.
Wedbush frames this as the beginning of a foundational AI consumer platform rather than a concession of weakness. The note argues that Apple does not need to build the best AI model; it needs to control the device through which roughly 20% of the world's population will access AI over the coming years.
If Apple can monetise AI services and expanded storage through its existing subscription infrastructure, Wedbush estimates the company could generate an additional $15 billion in annual services revenue, on top of the roughly $100 billion it already earns from its services division.
The analysis draws a parallel with Apple's App Store model: by providing the platform, the distribution and the billing relationship, Apple can take a cut of AI-driven activity without bearing the research and development cost of building competitive models itself.
Wedbush also highlights the leadership transition at Apple, with new chief executive John Ternus taking over from Tim Cook.
Ives describes Ternus's reputation as strong both inside Cupertino and across the wider technology industry, and says the new chief executive understands Apple's institutional DNA after decades at the company.
The note argues that hardware innovation will remain the foundation of Apple's success and points to several product developments on the horizon: foldable phones, an AI-enabled smartphone with significant redesigns expected in 2027 to mark the iPhone's 20th anniversary, and more affordable Apple Glasses.
In China, Wedbush says Apple's partnership with Alibaba on AI will become increasingly important as the company pursues its massive installed base in the country, despite political scrutiny from Washington over technology ties with Chinese firms.
The bull case is not without risks. Wedbush acknowledges that Apple's growth depends on the success of its iPhone product cycles, its ability to further penetrate its installed base with software and services, and the competitive and macroeconomic environment in China, where tariffs remain a long-term concern.
Apple trades at roughly 33 times Wedbush's fiscal 2026 earnings estimate of $8.64 per share, falling to 31 times the fiscal 2027 estimate of $9.35. Full-year revenue is forecast at $472.5 billion for fiscal 2026 and $495.4 billion for fiscal 2027.
The $400 target, based on a sum-of-the-parts valuation, implies roughly 39% upside from the current price and would value Apple at approximately $5.9 trillion, which would make it the most valuable publicly listed company in the world.
Wedbush rates Apple outperform.