TLDR
- Wedbush analyst Daniel Ives sets $350 price target for Apple stock by 2026, representing 28% upside from current $273 price
- Morgan Stanley raises price target to $315 from $305, citing pricing power and planned price hikes to offset commodity costs
- Strong iPhone 17 sales exceed Wall Street estimates for December quarter, with particular strength in China market
- Apple plans formal partnership with Google Gemini in early 2026, with AI monetization potentially adding $75-$100 per share value
- CEO Tim Cook expected to remain through 2027 to guide AI transition, with new senior VP Amar Subramanya leading machine learning strategy
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Apple stock sits at $273 per share, about 5% below its December 3 high of $288.61. But two major Wall Street firms see much higher prices ahead.
Apple Inc., AAPL
Wedbush’s Daniel Ives projects shares could hit $350 within twelve months. Morgan Stanley just raised its target to $315 from $305. Both firms point to Apple’s AI plans as the main driver.
The stock has gained 9.8% in 2025 so far. Ives, a five-star analyst ranked #372 out of 10,202 on TipRanks, has delivered 15.43% average returns with an 84% success rate on his Apple calls.
iPhone 17 sales are beating expectations heading into the December quarter. The strength extends even to China, a market that’s been challenging for Apple lately. Ives calls this performance part of an “invisible AI strategy.”
The numbers backing this strategy are huge. Apple has 2.4 billion iOS devices in use worldwide. That includes 1.5 billion iPhones.
Price Hikes Coming to Offset Costs
Morgan Stanley expects Apple to raise prices by 5% to counter higher memory input costs. The firm projects FY27 earnings per share of $9.83, up from its previous estimate of $9.55.
Gross margins will take a hit from those higher component costs. Morgan Stanley forecasts margins down 130 basis points. But higher revenue from price increases should more than compensate.
The firm’s $315 target reflects a 32x multiple on those FY27 earnings. Morgan Stanley rates the stock Overweight with 14% risk-adjusted upside.
AI Partnership and Leadership Moves
Apple will partner with Google Gemini starting in early 2026. Ives believes this AI monetization could add $75 to $100 per share in value over the next few years.
The company recently hired Amar Subramanya as senior vice president for machine learning and AI strategy. Ives calls it “the perfect hire” for Apple’s AI reset.
Tim Cook plans to stay as CEO through at least 2027. That timeline lets him oversee the critical AI transition and the mid-2026 Siri launch.
Apple currently holds a Moderate Buy consensus. The rating comes from 20 Buy recommendations, 10 Holds, and two Sells. The average analyst price target of $299.49 suggests 9.4% upside.
Morgan Stanley maintains confidence in Apple’s pricing power. The firm expects AI investments to pay off as the company rolls out new features next year.
