Apple’s impressive eight-week ascent to record highs is set for a significant test as the company approaches its annual Worldwide Developers Conference (WWDC) on June 8. Investors are keenly watching to see if Apple can leverage this pivotal event to bolster its artificial intelligence strategy, which has shown a somewhat uneven execution thus far.
This year marks a period of transition for Apple, with long-time CEO Tim Cook slated to hand over leadership in September and a crucial AI partnership with Alphabet’s Google taking shape. The central question on many minds is whether Apple can finally deliver a truly conversational Siri.
Ben Reitzes, Melius Research partner and head of technology research, is optimistic, predicting a substantial upgrade for Siri with the assistance of Google’s Gemini large language models. “We are seeing evidence that Siri could prove to be an agentic interface that can further differentiate the Apple ecosystem and ignite a level of excitement with developers not seen since the early days of the App Store,” Reitzes stated. He anticipates that Apple “may be on the brink of some real AI sizzle.”
Melius Research envisions a future where essential applications like Uber, Lyft, and DoorDash become deeply integrated into Siri’s functionalities. Such a move could not only increase user engagement with these apps but also drive higher App Store revenue, further strengthening Apple’s high-margin services business. Reflecting this optimism, Melius raised its price target for Apple shares to $385, representing a nearly 25% upside from recent trading levels.
Apple has been striving to enhance Siri’s capabilities since its 2022 partnership with OpenAI, which allowed for ChatGPT integration for more complex queries. However, after facing challenges with its in-house AI development, Apple pivoted in January, announcing its alliance with Google to utilize Gemini.
CNBC’s Jim Cramer noted some incremental improvements in Siri, suggesting that by the time WWDC arrives, the assistant will be significantly more advanced. This sentiment is echoed by Bank of America, which is also bullish on the prospect of a revitalized Siri. Analysts at BofA believe that if AI assistants evolve into the primary gateway for search, applications, commerce, and workflow completion, Apple would gain considerable leverage over model providers, app developers, merchants, advertisers, and payment networks. Consequently, Bank of America has increased its price target for Apple to $380.
Despite current optimism, Wall Street’s sentiment towards Apple’s AI roadmap has not always been this positive. Initial reactions to Apple’s AI suite, unveiled at WWDC 2024, were described as evolutionary rather than revolutionary, and the company faced similar underwhelm at WWDC 2025. While Apple shares experienced short-term dips following these events, they ultimately finished higher in both years. Notably, in the previous year, despite the perceived lack of AI “sizzle,” advancements in software and hardware for the iPhone 17 models led to strong sales performance.
The multiyear partnership with Alphabet represents a strategic win for both tech giants. Apple benefits from Google’s AI prowess, including the Siri upgrade, reportedly for a $1 billion investment. This arrangement allows Apple to sidestep the immense costs associated with developing AI infrastructure, which Google has invested heavily in and continues to do so. For Alphabet, this collaboration ensures Google remains prominently featured on both iPhones and Android devices, a significant advantage given Google’s existing substantial payments to Apple for being the default search engine.
With WWDC 2026 on the horizon, Apple’s recent rally reinforces a “buy and hold” strategy for the stock. As Cramer aptly put it, “The quiet upward propulsion of Apple is a great joy.” The stock has surged approximately 25% since its March lows, outperforming the S&P 500’s gains year-to-date. This performance underscores a robust recovery and investor confidence in the company’s future trajectory.
Original article, Author: Tobias. If you wish to reprint this article, please indicate the source:https://aicnbc.com/22091.html
