- Wedbush currently holds an ‘Outperform’ rating on Apple’s shares with a $350 price target.
- The firm emphasized that the company remains on course to unveil its next-generation AI features by summer.
- Wedbush estimates that Apple’s AI strategy could contribute $75 to $100 per share in value over the next several years.
Wedbush on Tuesday stated the recent pullback in Apple Inc.’s (AAPL) shares was driven by investor concerns about the tech giant's AI strategy, with concerns centring on potential delays for Siri AI.
Despite the pullback, Wedbush maintains confidence in Apple’s AI plans.
AI Strategy And Future Outlook
The firm believes Apple’s dip is overblown, emphasizing that the company remains on course to unveil its next-generation AI features by summer. Wedbush currently holds an ‘Outperform’ rating on the shares with a $350 price target, reflecting optimism about long-term growth.
“The firm believes this recent worry and selloff in Apple's shares is unwarranted as the focus is Apple getting its AI strategy right and releasing its advanced AI features by the summer timeframe and that still appears on target.”
-Wedbush
Apple stock traded over 1% higher on Tuesday after the morning bell. On Stocktwits, retail sentiment around the stock remained in ‘bearish’ territory amid ‘normal’ message volume levels.
Long-Term Impact on Growth
According to a Seeking Alpha report, Wedbush estimates that Apple’s AI strategy could contribute $75 to $100 per share in value over the next several years. With a global installed base of 2.5 billion iOS devices, including 1.5 billion iPhones, the firm contends that the timing is right for Apple to accelerate AI adoption and monetization, potentially boosting both revenue and market positioning.
For Apple investors, the slow rollout of AI features such as the updated Siri remains the primary concern. Even though the company posted strong quarterly results, driven by strong iPhone 17 sales and a recovery in China, the stock hasn’t gained much.
AAPL stock has fallen 5.9% so far this year and has gained over 4% in the last 12 months. Apple said on Monday that it will hold a “special Apple Experience” event on March 4.
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