A trio of prominent Wall Street investment firms have significantly raised their price targets for Apple Inc. within a short two-day period. The consensus among analysts points to a powerful combination of pent-up demand for iPhone hardware and the impending integration of artificial intelligence features, potentially setting the stage for a multi-year upgrade super-cycle.
The Bullish Case for Hardware and Software
The most optimistic forecast comes from Wedbush Securities, where analyst Dan Ives has set a Street-high target of $350 per share. Ives identifies two primary catalysts for this re-rating. First, he notes robust early demand for the iPhone 17, particularly in the critical Chinese market as the year draws to a close. Second, and more significantly, he highlights the upcoming monetization of AI. The anticipated integration of Google’s Gemini model, expected by early 2026, is projected by Wedbush to unlock between $75 and $100 in incremental value per share.
Ives has dubbed 2026 the year Apple fully enters the “AI revolution.” The company’s strategy, he observes, diverges from competitors investing heavily in infrastructure. Instead, Apple is focusing on the application layer, with a revamped Siri and new generative AI features designed to compel users to upgrade their devices.
Supply Constraints Signal Strong Demand
Supporting the thesis of robust hardware demand, analysts at Citi have lifted their price objective from $315 to $330. The team, led by Atif Malik, points to concrete supply constraints for the iPhone 17. Notably, wait times of approximately ten days persist more than two months after launch in key markets including the United States, China, and India—exceeding the availability of previous models at a comparable point in their product cycles.
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The core of Citi’s argument hinges on a looming upgrade wave. Millions of users with iPhone 12 and 13 models, purchased during the pandemic years of 2020 and 2021, are now approaching a natural device replacement window. Consequently, Citi projects iPhone shipments will reach 244 million units in 2025, climbing to 261 million by 2027.
Services Business Poised for an AI Boost
Echoing the positive sentiment, Evercore ISI also increased its valuation estimate, setting a new target of $325. Their analysts emphasize that AI-powered software enhancements are likely to provide a substantial tailwind for Apple’s high-margin Services segment, which includes offerings like the App Store, Apple Music, and iCloud.
Apple’s shares currently trade around $277, sitting meaningfully below these revised analyst targets. The stock recently touched a 52-week high of $288.62. With a market capitalization of approximately $4.1 trillion, the company retains its position as the world’s most valuable publicly traded entity.
Acknowledging the Uncertainties
Despite the wave of upward revisions, certain risks persist. The practical execution and consumer reception of Apple’s AI strategy remain unproven. Furthermore, the purchasing power of Chinese consumers continues to be a variable watched closely by the market. The upcoming holiday quarter sales figures will provide the first concrete evidence of whether the demand signals cited by analysts have material substance.
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