Bank of America has reiterated its buy rating on Apple, increasing its price target from $330 to $380, which suggests a potential 23% upside from the stock's recent closing price. Analyst Wamsi Mohan emphasized that as artificial intelligence transitions towards user-focused agents, Apple stands to benefit significantly due to its extensive control over user data via its devices.
Mohan noted that Apple's advantage lies in its silicon and iOS, which dictate the efficiency and privacy of AI operations.
Despite some analysts expressing concerns about Apple's AI strategy compared to its peers, Mohan believes that Apple's Siri could generate substantial incremental revenues, estimating between $15 billion to $30 billion by fiscal 2030, with a more optimistic scenario suggesting revenues could reach between $40 billion to $65 billion.
He highlighted that in a future where AI agents dominate, the value will accrue to platforms that manage user intent and context effectively, positioning Siri as a critical component for Apple's strategy moving forward