There’s no denying it Apple(NASDAQ:AAPL) has been a long-term winner for investors, gaining 78,390% since its inception IPO As of this article. However, in the last few years, the iPhone manufacturer has fallen on hard times. The combination of economic uncertainty and repeated tariffs has taken its toll, with Apple shares gaining just 40% in the past two years, lagging Apple’s 46% gain. S&P 500.
But things are starting to improve. The latest developments could help revive the flagging stock and return Apple to its former glory.
Dan Ives of Wedbush Securities recently issued a new Street-high price target of $350; This represents a potential gain of 35% for investors compared to Friday’s close, which could weigh on Apple’s shares. market value It rose to $5.17 trillion. The experienced technology analyst listed four catalysts that will take the iPhone maker to new heights in 2026.
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While the artificial intelligence (AI) revolution is in full swing, Apple has largely remained out of the discussion. Because of its walled garden and emphasis on user privacy, Apple has faced difficulties collecting the data needed to power AI. Rumors are circulating that Apple will sign a deal Alphabet Google will use Gemini as the basis for its own broad language models. Ives called Apple’s “invisible AI strategy” the elephant in the room and suggested that the partnership between the two tech giants would be a necessary first step to fuel Apple’s rise.
Ives’ prediction came true on Monday when Apple announced the partnership, saying: “Google’s technology provides the most capable foundation for Apple Core Models, and we’re excited about the innovative new experiences it will deliver for our users.”
According to Ives, Apple has the “world’s largest consumer installed base” with more than 2.4 billion active iOS devices, including more than 1.5 million iPhones. This ensures a captive audience and target market for Apple’s AI-powered products and services.
Users have long underestimated the status of Apple’s voice assistant, Siri. While conversational AI was groundbreaking when Siri was added to the iPhone in 2010, upgrades have lagged in recent years and rival offerings have left the digital darling behind.
Ives also predicted that Siri would receive a much-needed revamp, and his prediction was prescient. As part of its partnership with Google, Apple said Gemini will “help power Apple Intelligence features, including the more personalized Siri coming this year.”
Chatbots and voice assistants have gone viral since the launch of ChatGPT in late 2022. The long-awaited upgrade for Siri could be a catalyst for future growth.
The aforementioned economic uncertainty has caused a decline in iPhone sales in recent years. Apple’s revenue fell 3% in fiscal 2023 and rose 2% in 2024. But business picked up in 2025 when sales rose more than 6%; Record revenue was achieved thanks to strong iPhone sales and service revenues, which reached an all-time high.
Ives believes Wall Street is underestimating iPhone sales growth for 2026, which he thinks will be driven by continued sales of the iPhone 17 and the successful transition to the iPhone 18. The analyst underlines the strong demand in China and predicts an increase in the average selling price (ASP) of next-generation devices.
The evidence shows that Ives’ offer was strictly for money. The introduction of the iPhone 17 late last year came with a $100 price increase, from $999 to $1,099. Therefore, it is not unreasonable to suspect a similar price increase when the iPhone 18 is released in September.
Rumors have been circulating in recent months that Apple CEO Tim Cook may be planning to step down as he approaches the “typical” retirement age. Moreover, this speculation was fueled by a recent change among the company’s top executives and the resulting update to Apple’s succession planning.
Ives believes this talk is idle chatter and predicts Cook will remain CEO “at least until the end of 2027.” He cites the recent hiring of renowned AI researcher Amar Subramanya as evidence of Cook’s steadfast focus on preserving Apple’s AI legacy, and downplays rumors about his impending retirement.
To be clear, no one knows for sure what Cook has in mind, but reports suggest he wants to reduce his workload. However, speculation regarding his potential retirement is just that and should be approached with caution until we hear otherwise from Cook himself.
Apple’s business trajectory suggests a $5 trillion market cap may not be far off:
Estimates late last year suggested that 315 million active iPhones that had not been upgraded in more than four years were underpinning a strong upgrade cycle.
According to Counterpoint Research, the global smartphone market will grow only 2% in 2025, while iPhone shipments increased by 10%. At the same time, Apple increased its market share from 18% to 20% in 2024.
These represent three ways Apple can increase its revenue and help its revenue reach $5 trillion. And the price is right, at just 28 times next year’s expected earnings.
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