Dan Ives Says Apple Is A ‘Sleeping Tech Giant’ In AI – Wedbush Sees 40% Upside

• Wedbush estimated that one in five people worldwide will access AI via an Apple device in the coming years.
• Apple stated in January this year that its worldwide installed base of users had reached 2.5 billion active devices, accounting for about 30% of the world's population.
• Apple’s AirPods with built-in cameras have reportedly entered the late stages of development, with the prototypes now resembling a near-final design and capabilities.

Dan Ives, Global Head of Tech Research at Wedbush, on Friday expressed optimism about the prospects of Apple Inc. (AAPL) in the ongoing AI revolution.

In a post on X, Ives stated that the upcoming Worldwide Developers Conference (WWDC) in June this year will be the key for Apple. He also stated that Wedbush has raised its price target for Apple to $400 from $350, implying an upside of nearly 40% from current levels.

“We are raising our price target to $400 reflecting this new AI age coming to Apple that will enable Cupertino to finally get into the AI Revolution as we estimate roughly 20% of the world's population will access AI through an Apple device over the coming years. WWDC key,” Ives said.

Apple shares were up nearly 1% in Friday’s pre-market trade, after the stock hit a new 52-week high on Thursday.

Wedbush Maintains ‘Outperform’ Rating On AAPL

According to TheFly, Wedbush maintained its ‘Outperform’ rating on Apple. The firm called Apple is a “sleeping tech giant” that is about to see a major AI inflection point.

The firm estimated that one in five people in the world will access AI through an Apple device in the coming years.

Apple stated in January this year that its total installed base of users in the world had reached 2.5 billion active devices, which accounts for about 30% of the total population in the world.

AAPL, GOOGL’s AI Partnership

Apple and Alphabet Inc.’s (GOOG, GOOGL) Google announced a multi-year partnership in January this year, stating that the iPhone-maker’s next generation of Foundation Models will run on Google’s Gemini models and cloud infrastructure.

The technology is expected to support future Apple Intelligence features, including a more personalized Siri set to launch later this year.

In a joint announcement, the two companies stated that Apple concluded that Google’s AI technology offers the strongest foundation for Apple Foundation Models and that it will enable a new generation of user experiences.

Apple Intelligence will continue operating across Apple devices and Private Cloud Compute while maintaining the company’s privacy-focused approach.

AAPL Testing AirPods With Cameras, Says Report

According to a Bloomberg report on Thursday, Apple’s AirPods with built-in cameras have entered the late stages of development, with the prototypes now resembling a near-final design and capabilities.

The upcoming AirPods feature cameras that can see the space around the user to provide information, and the company is now undertaking advanced testing.

These new earbuds are said to resemble the AirPods Pro 3 and will be able to capture low-resolution visual information. That said, they are not designed to take photos or videos; instead, they just act as the eyes for the Siri virtual assistant.

How Did Retail Traders React To AAPL?

Retail sentiment on Stocktwits around Apple trended in the ‘bearish’ territory, with message volumes at ‘normal’ levels at the time of writing.

AAPL stock is up 6% year-to-date and 46% over the past 12 months. The S&P 500 ETF (SPY) is up 30% over the past 12 months, while the Invesco QQQ Trust ETF (QQQ) is up 44%.

The Vanguard S&P 500 ETF (VOO) and the iShares Core S&P 500 ETF (IVV) are up 30% during this period.

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