Apple’s WWDC 2026 ‘Key Catalyst’ For AAPL Stock, Will Decide AI Positioning: Morgan Stanley

• Upcoming WWDC will decide if Apple will be looked at as an AI winner, says Morgan Stanley. 
• Low investor expectations create a favorable setup for a narrative re-rating.
• A polished AI platform and clear Agentic vision could push valuation to $365-$385, with upside to $440.

Apple’s upcoming WWDC could serve as a key catalyst to strengthen its position in artificial intelligence, Morgan Stanley said. It's an area where Apple has fallen short of the competition. 

Investors continue to price the stock based on how many iPhones it sells. iPhone sales make up nearly 55% of Apple total revenues, followed by services like iCloud and App Store which contribute about 25%. The remaining is spread between its wearables (iWatch), Mac and iPad. 

Apple shares ended Monday nearly 2% lower and extended declines after-hours, down 0.2%. 

Morgan Stanley View On Apple

Morgan Stanley analyst Erik Woodring said in a research note that WWDC 2026 could be a key catalyst for Apple stock, potentially reframing the company as an “AI winner” and driving multiple expansion similar to the 20-point outperformance seen after WWDC 2024, according to a note accessed by TheFly.

Morgan Stanley has an Overweight rating and $330 price target on the shares. It says low investor expectations create a favorable setup for a narrative re-rating, where a polished AI platform and clear Agentic vision could push valuation to $365-$385, with upside to $440.

The $440 target denotes a near 44% jump from Apple’s Monday (June 1) closing price. 

Bank of America, recently increased his price target for the stock to $380, up from $330 and it thinks Apple could be a winner of the shift to agentic AI. BofA forecast that the iPhone maker could generate between $15 billion and $30 billion in AI-related revenue by the fiscal year 2030. 

However, Apple’s second-quarter revenue for this year was $111.2 billion and about $416 billion for 2025, making the $30 billion AI revenue outlook seem paltry in front of the massive revenue iPhone sales generate.  

Apple To Launch Bill Splitting, Smart Glasses: Report

Apple is planning a new service for the iPhone that will let users split bills, expanding its push into everyday financial tools, Bloomberg reported on Monday, citing people with knowledge of the plan. 

The new iPhone feature will allow users to photograph a receipt, assign items to different people and generate payment requests. Apple aims to announce the offering next week's Worldwide Developers Conference, they added. Shares of PayPal (PYPL) and Block (XYZ) moved off their highs following the report. 

Apple is also aiming to launch its first smart glasses in late 2027, Bloomberg reported. Rival Meta (META) has already launched its smart glasses in partnership with Ray-Ban and Oakley. 

Apple Retail View 

Retail sentiment on Stocktwits was “bearish” with “low” message volumes. 

AAPL stock has gained nearly 13% year-to-date.

Read More: HPE Stock Soars After-Hours As AI Demand Spurs Expectation-Beating Sales Forecast