Apple Shares Could Rise 39 Percent as Wedbush Raises Price Target on AI Strategy Optimism

Wedbush Securities has lifted its price target on Apple to 400 dollars from 350 dollars, maintaining an outperform rating as the investment bank positions the technology giant at the threshold of a new growth cycle driven by artificial intelligence. The revised target, published on Thursday, suggests potential upside of approximately 39 percent from the current share price of 287.44 dollars.

Analyst Dan Ives and his team at Wedbush view the upcoming Worldwide Developers Conference in June as a pivotal moment for Apple’s AI ambitions. The event is expected to feature new chief executive Kevan Ternus outlining the company’s detailed AI roadmap, with the forthcoming iOS 27 operating system positioned as the centrepiece of this strategic shift.

The iOS 27 update is designed to enable Apple’s 2.5 billion users to select their preferred AI model as the default option for Apple Intelligence features. Integration with Google’s Gemini is anticipated, alongside the existing arrangement with OpenAI’s ChatGPT. Anthropic’s Claude is also expected to be available as a selectable default. This approach effectively positions Apple as a distribution platform for consumer AI rather than as a developer of a single proprietary model.

The financial rationale underpinning Wedbush’s upgraded target rests primarily on Apple’s services division. The firm estimates that AI-driven features could generate an additional 15 billion dollars in annual services revenue over time, as users subscribe to enhanced AI capabilities and expanded storage options. Wedbush contends that this potential remains underappreciated in current market valuations.

Ives calculates that the combined value contribution from AI monetisation and services expansion could add between 75 and 100 dollars to Apple’s per-share valuation. This assessment forms the foundation for the 400 dollar price target. The services segment, which encompasses the App Store, iCloud, Apple Music and Apple Pay, already generated revenue exceeding 100 billion dollars in fiscal 2025. A substantial AI-related uplift would materially improve margins, given that services operate at significantly higher profitability than hardware sales.

The analyst note also addresses the hardware pipeline under Ternus, who recently succeeded Tim Cook. Ives credits the new chief executive with a deep understanding of Apple’s product philosophy and highlights a development roadmap that includes foldable smartphones, a redesigned AI-enabled iPhone anticipated around 2027 to coincide with the device’s 20th anniversary, and a revised iteration of Apple Glasses at a more accessible price point.

These hardware initiatives represent longer-term opportunities. The more immediate test arrives at the Worldwide Developers Conference, where investors will assess whether Ternus can articulate a convincing software and AI strategy that demonstrates Apple has not ceded ground to competitors who entered the AI market earlier.

Wedbush acknowledges significant risk factors, particularly in China, where Apple confronts competition from lower-priced domestic smartphone manufacturers and ongoing challenges related to trade policy and tariffs. The firm identifies a partnership with Alibaba on AI features as important for maintaining market position in China, whilst noting that the arrangement remains subject to regulatory examination from Washington.

The investment bank’s financial projections anticipate Apple revenue of 472.5 billion dollars in fiscal 2026, rising to 495.4 billion dollars in 2027. Earnings per share are forecast at 8.64 dollars and 9.35 dollars for those respective years. Based on the 2026 earnings estimate, the stock currently trades at 33 times forward earnings. Wedbush’s 400 dollar valuation target derives from a sum-of-the-parts methodology.