Every once in a while, an analyst note lands that actually makes you sit up and pay attention.
This morning it was Dan Ives from Wedbush dropping a small bombshell: he’s raising his price target on Apple to $350 and declaring 2026 the year the Cupertino giant finally steps into the AI spotlight. Not just dips a toe – actually strides in with confidence.
And honestly? After two years of investors grumbling about Apple’s “invisible” AI strategy, this feels like the plot twist we’ve all been waiting for.
The One Thing Everyone’s Been Asking: Where’s Apple’s AI?
Let’s be real – the last eighteen months haven’t exactly been kind to Apple bulls on the AI front.
We watched Nvidia become the darling of Wall Street. Microsoft and Google rolled out AI features faster than most of us could keep up. Amazon turned Alexa into something scarily competent. And Apple? Apple gave us Apple Intelligence… which, let’s be honest, felt more like a polite knock on the AI door than a full-blown entrance.
Investors started whispering (and sometimes shouting) that Apple had missed the boat. The stock still climbed – services revenue is a beautiful thing – but the narrative around “AI laggard” began to stick.
Dan Ives just threw cold water on that entire story.
The Google Gemini Partnership Changes Everything
According to Ives, Apple will formally announce a deep partnership with Google’s Gemini model early next year. And he’s calling it a potential game-changer for both companies.
“2026 is going to finally be the year that Apple actually enters the AI Revolution.”
Dan Ives, Wedbush Securities
Think about that for a second. Apple has 2.4 billion active iOS devices worldwide. Roughly 1.5 billion iPhones. That’s the largest premium consumer installed base on the planet. If Apple suddenly flips the switch and makes truly useful, on-device + cloud hybrid AI available to all of them… well, the monetization possibilities are kind of staggering.
Ives believes the AI piece alone could add $75 to $100 per share in value over the next few years. That’s not pocket change – that’s roughly 30-40% upside from Friday’s close on AI alone.
Why 2026 Specifically?
Timing matters here. A lot.
Most analysts expect the iPhone 17 cycle (fall 2025) to be solid but not spectacular. The real hardware leap – thinner designs, bigger camera upgrades, maybe even the long-rumored foldable – lands with iPhone 18 in fall 2026.
That gives Apple roughly 18-24 months to bake Gemini-powered features deep into iOS 20 (or whatever they call it). Imagine:
- Siri that actually understands context across days or weeks
- Live translation that works flawlessly in Messages, FaceTime, even third-party apps
- Photo and video editing that makes Hollywood-grade tools feel primitive
- Personalized proactive assistance that knows you better than your spouse
Now layer on Apple’s legendary ability to monetize through services. Higher-tier iCloud plans bundled with premium AI features? New App Store guidelines that favor AI-enhanced apps? The list goes on.
Tim Cook Isn’t Going Anywhere
One interesting side note in Ives’ report: he expects Tim Cook to remain CEO at least through the end of 2027 to shepherd this AI transition.
That’s noteworthy because succession chatter has quietly bubbled in the background for years. Cook will be 67 in 2027 – not ancient, but definitely experienced enough to see the company through its biggest technological shift since the original iPhone.
In my view, keeping Cook for the AI rollout makes perfect sense. He’s the ultimate operator, and operators shine when it’s time to turn promising tech into hundreds of millions of users worldwide.
The China Comeback No One’s Talking About
Lost in the AI excitement is another bullish nugget from Ives: iPhone 17 demand trending “strong” into year-end, especially in China.
Remember when every headline screamed that Apple was dead in China? Turns out those obituaries were premature. Recent data shows Apple gaining share again, helped by aggressive trade-in programs and – surprise – consumers holding out for the slimmer iPhone 17 models.
When you combine improving China trends with a robust U.S. upgrade cycle and the Gemini partnership, you start to understand why Ives sounds almost giddy.
Putting the $350 Price Target in Perspective
Let’s do some quick math.
Apple closed Friday around $278. A $350 target implies roughly 26% upside in 12 months. Historically, Apple has rarely delivered that kind of return in a single year outside of the COVID rebound.
But here’s what makes this different: the valuation compression we’ve seen in 2024-2025. Apple’s forward P/E has dipped into the mid-20s at times – cheap by its own standards. If AI drives even a modest re-rating to 30x forward earnings (still below the Magnificent 7 average), the math starts working in bulls’ favor pretty quickly.
Risks? Of Course There Are Risks
Look, I’m excited, but I’m not blind.
- Regulatory scrutiny around any Google partnership will be intense
- Execution risk is real – Apple has to deliver AI that feels magical, not just competent
- Competition won’t sit still for two years
- Macro events could derail the best-laid plans
That said, Apple has a habit of showing up late to parties and still ending up the center of attention. The iPhone wasn’t first. The watch wasn’t first. AirPods definitely weren’t first. Yet here we are.
Maybe – just maybe – AI will be no different.
If Dan Ives is even half right, 2026 could mark the start of Apple’s third great growth chapter. First the iPhone. Then services. Now AI.
And if that happens? $350 might turn out to be conservative.
Either way, the next 12-18 months just got a lot more interesting for anyone holding Apple stock.
