$Apple(AAPL)$
Wedbush's Dan Ives moved his target to $400, the highest among major firms. Evercore ISI raised its target to $365, and Melius analyst Ben Reitzes raised his to $385, citing what he called real AI sizzle.
Bank of America raised its target to $380, forecasting $15-30 billion in AI-related revenue for Apple by fiscal 2030, as reported by AppleInsider.
Key figures on Apple's position heading into WWDC 2026 on June 8:
Apple's rebuilt Siri is reportedly based on a 1.2 trillion parameter system developed with Google; Apple pays Google approximately $1 billion per year for access to the custom model. Sensitive queries run on Apple's private servers, with the cloud model handling heavier reasoning tasks.
Apple's bill-splitting feature is described in the industry as a textbook case of "Sherlocking," embedding capabilities that eliminate demand for standalone third-party apps. Previous examples include Apple building its own password manager, PDF editor, and podcast app, each of which displaced dedicated competitors.
Apple guided for Q3 fiscal 2026 gross margin of 47.5% to 48.5%, down from 49.3% in the March quarter. CEO Tim Cook warned that memory costs are set to rise sharply, creating a near-term margin headwind that makes services growth more important to the investment case.
AAPL is trading around $310 heading into WWDC, near its 52-week high of $315, with a year-to-date gain of approximately 15%.
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