Wedbush Optimistic About Apple's AI Strategy and iPhone 17 Sales
Price Target Increase: Wedbush raised Apple's stock price target from $320 to $350, citing strong iPhone 17 sales and an anticipated entry into the AI market in 2026 as key factors for the upgrade.
AI Strategy Development: Analysts believe Apple is beginning to outline a comprehensive AI strategy, with expectations for a significant partnership announcement with Google Gemini in early 2026, which could be transformative for both companies.
Leadership Changes: John Giannandrea, Apple's senior vice president for Machine Learning and AI Strategy, will step down, with AI researcher Amar Subramanya taking over, indicating a shift in Apple's approach to AI development.
Stock Potential: Analysts suggest that Apple's stock currently does not reflect any "AI premium," making it an attractive investment opportunity as the company prepares for significant advancements in AI technology.
Trade with 70% Backtested Accuracy
Analyst Views on AAPL
About AAPL
About the author

- 50th Anniversary Plans: Apple Inc. is set to celebrate its 50th anniversary in 2026, with CEO Tim Cook indicating that the company is reflecting on its past and planning celebrations, which could attract more attention and enhance brand image.
- Historical Reflection and Future Focus: Cook mentioned that Apple is reviewing old photographs and products to commemorate its impact over the past 50 years, and while the company typically focuses on the future, this reflection may inspire new innovations.
- Stock Performance Analysis: Apple stock rose 11.5% in 2025 but underperformed against the S&P 500's 16.6%, with a year-to-date increase of 1.7% in 2026; despite reporting record quarterly results, investors are hoping for a more positive market reaction.
- New Product Expectations: As the 50th anniversary approaches, Apple may introduce new foldable smartphones, and combined with the celebrations, this could attract more consumer attention, further driving sales growth and solidifying market position.
- Siri Upgrade Delays: Apple is reportedly considering delaying its long-anticipated upgrades to the Siri virtual assistant due to in-app voice commands failing to function as intended, resulting in a 5% drop in stock price, which not only undermines investor confidence but may also hinder Apple's competitive edge in AI.
- Privacy Policy Challenges: The company faces challenges in integrating artificial intelligence while safeguarding user data, as it attempts to keep AI processes on devices or secure servers, a cautious approach that could delay technological advancements and impact its market position.
- Increased Regulatory Pressure: CEO Tim Cook received a warning letter from FTC Chairman Andrew Ferguson, indicating potential legal violations if Apple News is found to misrepresent its terms of service, which could further complicate Apple's operational strategies and public image amid growing scrutiny.
- Investor Reaction: Investors reacted strongly to the stock price decline due to heightened concerns about the power of Apple and other tech giants, raising doubts about Apple's future growth potential and possibly leading to broader market volatility.
- Patent Litigation Victory: A Texas jury ruled that Apple did not infringe on Optis Wireless's 4G wireless patents, marking a significant win for Apple in its long-standing legal battle, thereby boosting confidence in its technology compliance.
- Historical Compensation Review: Optis previously secured $506 million and $300 million in 2020 and 2021 respectively, but both awards were overturned on appeal, demonstrating Apple's resilience and strategic adjustments in legal disputes.
- Pending UK Case: Despite winning in the U.S., Apple faces a $502 million judgment in the UK, with the Supreme Court expected to hear the case in June, which could impact Apple's international legal strategy.
- Stock Price Fluctuations: Apple closed at $261.73 on Thursday, down 5%, and slipped another 0.53% in after-hours trading, reflecting market sensitivity to legal risks, although AAPL maintains a strong price trend in both short and long terms.
- Market Reaction: Stocks in real estate, logistics, and finance sectors plummeted due to AI concerns, indicating a risk-averse sentiment among investors towards high-fee, labor-intensive business models.
- AI Impact: The new tool from Algorhythm Holdings claims to increase freight volumes by 300% to 400% without hiring more employees, leading to a sharp decline in logistics stocks and reflecting fears of AI replacing traditional jobs.
- Investment Dynamics: SoftBank of Japan added $4.2 billion in value to its OpenAI investment, boosting its Vision Fund by $2.4 billion in Q1 2026, demonstrating the ongoing strong investment potential in the AI sector.
- Economic Indicators: The U.S. consumer price index is expected to show a 2.5% year-over-year increase, which could significantly impact markets, with the S&P 500 potentially losing up to 2.5% depending on core monthly data fluctuations.
- Earnings Highlights: Rivian's Q4 revenue reached $1.29 billion, down from $1.73 billion year-over-year but exceeding the $1.27 billion market estimate, showcasing the company's resilience amid challenges.
- Automotive Revenue Decline: Automotive revenue totaled $839 million, a 45% year-over-year drop primarily due to reduced regulatory credit sales, fewer vehicle deliveries, and lower average selling prices, reflecting intensified market pressures.
- Software Services Surge: Software and services revenue soared 109% to $447 million, indicating significant progress in diversifying revenue streams, which could lay the groundwork for future profitability.
- Production and Delivery Metrics: The company produced 10,974 vehicles and delivered 9,745 in Q4, bringing total annual deliveries to 42,247 units, demonstrating ongoing efforts and potential in scaling production despite challenges.
- Tech Sector Retreat: U.S. stocks experienced a significant decline on Thursday, with the S&P 500 down 1.57%, the Dow Jones down 1.34%, and the Nasdaq 100 down 2.04%, primarily driven by a sell-off in the Magnificent Seven tech stocks, indicating concerns over the profitability outlook in the tech sector.
- Cisco Systems Warning: Cisco Systems saw its stock plummet over 12% after forecasting that rising memory chip prices would erode profitability, raising investor concerns about future performance and potentially diminishing market confidence.
- Weak Economic Data: Initial jobless claims in the U.S. fell by 5,000 to 227,000, below the expected 223,000, while January existing home sales dropped 8.4% month-over-month to 3.91 million, marking a 16-month low, which reflects signs of economic slowdown that could impact market sentiment.
- Positive Earnings Season: Despite the overall market downturn, over 76% of S&P 500 companies that reported earnings exceeded expectations, with Q4 earnings projected to grow by 8.4%, indicating strong corporate profitability that may provide support for the market.








