Wedbush Securities reiterated its Outperform rating on Apple (AAPL, Financials), maintaining a $325 price target, citing expectations of AI-driven services growth and strong product demand in the long term.
Delays in AI improvements and the next-generation Siriwhich are currently anticipated with iPhone 17have put pressure on Apple shares, claims Wedbush analyst Daniel Ives. A sluggish tech environment and worries about possible China tariffs are other elements influencing the stock.Wedbush is still hopeful about Apple’s AI projects despite the delays as he projects a significant income increase from AI-driven products. Though overall iPhone sales are predicted to reach 225 million230 million units in FY25 and 245 million250 million in FY26, the business anticipates that 10 million iPhone sales may shift from fiscal year 2025 to FY26 owing to postponed AI features.With 20% of the world’s population likely to utilize AI-powered features via an Apple device, Apple’s AI adoption might be a major driver of future development. Wedbush says this pattern might set off a major cycle of upgrades.Apple is likely to publicly announce a collaboration with Alibaba (BABA, Financials) in China, therefore enabling the introduction of Apple Intelligence there by June.Wedbush also projects that Apple’s AI ecosystem may bring in $10 billion yearly by 2027, hence enabling expansion of the company’s services division. Apple is still a major AI player, the company insists, despite the recent market sell-off, given ongoing developer interest in AI uses for the App Store.
This article first appeared on GuruFocus.
