Apple Inc. is poised to finally enter the artificial intelligence arena in a significant way in 2026, according to a bullish analysis from Wedbush senior analyst Dan Ives. Ives maintained an "outperform" rating on Apple stock (AAPL) and raised his price target to $350, implying a 27% upside from current levels. He argues that Apple's long-awaited AI strategy, combined with strong iPhone 17 sales, could reshape investor sentiment and unlock billions in new value.
The centerpiece of this strategy is an expected formal partnership with Google's Gemini AI, anticipated to be announced early next year. Ives calls this a "game-changer" that would leverage Apple's massive installed base of 2.4 billion iOS devices and 1.5 billion iPhones to instantly give the company a powerful AI presence. This integration could range from Siri upgrades to new productivity tools and personalized services. Ives estimates AI monetization could add up to $100 per share to Apple's value over the coming years, creating recurring revenue streams directly tied to AI usage across its ecosystem.
Speculation also points to other major AI initiatives for 2026, including a revamped, generative AI-powered Siri, AI-driven features in iOS 20, and potential on-device AI chips to enhance privacy and efficiency. Ives emphasized that CEO Tim Cook's expected tenure through at least 2027 provides critical leadership stability for this strategic transition.
This corporate AI optimism extends to the broader market. Goldman Sachs strategists, led by Ben Snider, forecast the S&P 500 to reach 7,600 points in 2026, a roughly 10% jump from current levels. They project S&P 500 earnings per share to rise 12% in 2026, with AI contributing an estimated 0.4% to that earnings growth. Snider notes that enterprise AI adoption remains early-stage, with larger companies like the "Magnificent Seven"—Nvidia, Apple, Microsoft, Alphabet, Amazon, Broadcom, and Meta—leading the charge. These mega-cap tech firms are expected to contribute roughly 46% of the index's total profit expansion next year.
This bullish outlook is echoed by other major institutions like Morgan Stanley, Deutsche Bank, and RBC Capital Markets, all projecting double-digit gains for U.S. equities in 2026 driven by economic resilience and AI adoption. However, some caution remains about potential valuation bubbles in tech-heavy market segments due to massive capital deployment into AI infrastructure.
