Key Takeaways
- Multiple analysts raised their price target for Apple stock following the iPhone maker’s quarterly results.
- CEO Tim Cook told analysts Apple is growing its AI investments, both in infrastructure and personnel.
- An emphasis on AI, potentially including an acquisition, could set Apple up for strong iPhone cycle in 2026, Citi analysts said.
Apple (AAPL) CEO Tim Cook made it clear that Apple is growing its AI investments, both in infrastructure and personnel, and multiple analysts raised their price target following the iPhone maker’s quarterly results.
JPMorgan analysts called out Cook’s “aggressive tone on investments to catch up and support Al competitiveness.” On Apple’s earnings call, Cook said the iPhone maker is ramping up its investments and reallocating employees to focus on AI.
The bank maintained an “overweight” rating and raised its price target to $255 from $250, suggesting 22% upside with Apple stock down 2% Friday at about $204. Whether it reaches that target could depend on features like an AI-enhanced Siri, which Cook confirmed is coming in 2026, after extensive delays.
Citi raised its target to $240 from $235, noting that growing AI spending, including a potential acquisition in the sector, could position Apple for a strong iPhone cycle in 2026.
Cook said on the earnings call Apple would consider buying other companies to raise its AI capabilities—something Wall Street analysts have suggested could give Apple’s AI efforts a bigger boost. Wedbush analyst Dan Ives, a longtime Apple bull, last month suggested AI startup Perplexity may be a target. And according to reports, Apple had discussions with Claude developer Anthropic and ChatGPT maker OpenAI about utilizing their models versus using in-house options.
Jefferies meanwhile raised its price target to about $191, which still implies downside to Apple’s current share price. The broker maintained a “hold” rating, adding, it’s “hard to get excited,” at the company’s current valuation. UBS similarly kept a “neutral” rating and raised its target to $220 from $210.