Is Apple Stock Headed to $400? Analyst Calls It a 'Sleeping Giant' With AI Catalyst

Wedbush analyst Dan Ives slapped a Street-high price target of $400 on Apple (AAPL), calling the iPhone maker a "sleeping giant" whose AI story is finally about to begin.

Rating Change

Ives raised his price target on Apple to $400 from a previous unspecified level, maintaining an Outperform rating. The new target implies significant upside from current trading levels.

Analyst's Rationale

Ives believes Apple holds a unique competitive advantage in AI due to its massive installed base of over 1 billion devices. He argues that the company will benefit from integrating AI into its hardware and services, unlocking new revenue streams. He added that investors are underestimating Apple's ability to generate substantial returns from AI.

Context

The call comes as big tech rivals like Microsoft and Google race to invest in AI. Apple's stock has risen about 30% over the past year but remains below its all-time high. Other analysts have mixed views, with price targets ranging from $150 to $400.

What to Make of It

Ives' recommendation reflects strong optimism about Apple's AI potential, but it remains a single analyst's view. Investors are encouraged to compare it with other opinions and consider the company's fundamentals before making any investment decision.