Apple’s AI strategy is under intense scrutiny after Wedbush Securities called for a $75-per-share valuation boost through transformative acquisitions. With rivals accelerating their AI capabilities, can Apple afford to play catch-up?
Why Wedbush Calls Apple’s AI Strategy ‘Back to the Future’
Dan Ives of Wedbush Securities didn’t mince words about Apple’s Worldwide Developers Conference (WWDC), comparing it to “an episode out of Back to the Future.” Three critical gaps stood out:
- No clear AI roadmap for Siri or other services
- Hardware-focused updates while competitors demoed generative AI
- Executive departures from Apple’s AI division
The $75-Per-Share AI Opportunity Apple Can’t Ignore
Wedbush maintains an “Outperform” rating with a $270 price target but argues Apple needs bold moves:
| Potential Move | Valuation Impact |
|---|---|
| Acquire Perplexity AI | +$50-$75/share |
| Overhaul Siri with LLMs | +$30-$45/share |
| Status quo | Risk of multiple contraction |
Leadership Crossroads: Can Tim Cook Steer Apple’s AI Revolution?
With COO Jeff Williams retiring and AI executives departing for Meta, pressure mounts on Cook to:
- Accelerate M&A in generative AI
- Restructure innovation teams
- Clarify AI vision at September event
FAQs: Apple’s AI Strategy Challenges
Q: Why is Wedbush focusing on Perplexity AI?
A: The startup specializes in conversational AI that could modernize Siri’s outdated architecture.
Q: How far behind is Apple in AI?
A: Competitors like Google and Microsoft have deployed 10x more AI research papers and products since 2022.
Q: What’s the timeline for Apple to respond?
A: Analysts expect decisive moves before Q1 2026 earnings to prevent developer ecosystem erosion.
Q: Could Apple build rather than buy AI capabilities?
A: Possible but unlikely given the 2-3 year gap versus buying proven technology.
