Apple’s AI Plans Are Finally Taking Shape. Here’s What That Means for AAPL Stock.

Apple (AAPL) revealed a major Siri update at its annual Worldwide Developers Conference (WWDC), boasting that Siri AI will now be more helpful than ever. Management disclosed that many Apple Intelligence features will be free for users, but some of the more powerful additions, like image generation, will have daily limits. The company offers iCloud+ plans starting at just $0.99 per month for an additional 50 GB. It is unclear, however, what plan users will need for the most common AI features. 

Apple also announced updates for operating systems across all of its devices. Notable additions included new child safety features with which parents will be able to control what their child can access via options like “Ask to browse” and child accounts.

Apple Intelligence and the new version of Siri were first introduced at WWDC 2024, but things didn’t go quite as planned for the company. Apple had promised new features to be added for anyone owning an iPhone 15 Pro or newer device. By March 2025, management admitted that adding these features would take longer than initially expected. As a result, a lawsuit was filed, and Apple ended up paying a $250 million settlement in May 2026.

After facing criticism for falling behind competitors in AI, Apple now looks to be in a much better position based on WWDC 2026. Announcing that Alphabet's (GOOGL) Google Gemini will be powering its AI features, Apple management believes that "Google's Al technology provides the most capable foundation for Apple Foundation Models."

For investors, however, the question remains whether they can trust Apple’s AI approach. The company continues to avoid spending on AI infrastructure like the hyperscalers, which is an indication that it is happy to rely on the infrastructure of others rather than build its own. Down the line, this may hurt Apple, but management clearly believes that dishing out billions of dollars just to get ahead of the crowd is not worthwhile. Instead, Apple will take its edge from its devices and ecosystem. That is essentially what investors are betting on today.

About Apple Stock

Apple is one of the world’s biggest technology companies that designs, manufactures, and sells consumer electronics, digital services, and software. The firm’s products include the iPhone, iPad, Apple Watch, Apple Vision Pro, AirPods, and Mac. Additionally, the company offers services like the App Store, Apple Music, Apple TV+, Apple Pay, and iCloud. Founded in 1976, the company is headquartered in Cupertino, California. Apple is currently led by CEO Tim Cook, although the firm announced in April 2026 that he will be succeeded by Senior Vice President of Hardware Engineering John Ternus in September 2026.

Over the past year, AAPL stock has performed broadly in line with the technology sector. The stock has generated gains of around 51% in the past 12 months, while the iShares U.S. Technology ETF (IYW) has delivered returns of around 55% during the same period. On a year-to-date (YTD) basis, the exchange-traded fund has outperformed AAPL stock with a 27% gain versus Apple's climb of 9%. 

Apple Beats Consensus Estimates 

Apple reported its second-quarter fiscal 2026 earnings on April 30. The firm beat analyst consensus estimates in both revenue and EPS, reporting $111.2 billion in revenue compared to the expected $109.7 billion and diluted EPS of $2.01 compared to $1.95 per share. Revenue and EPS jumped 17% and 22% year-over-year (YOY), respectively. 

CEO Tim Cook called it the best March quarter in Apple's history, crediting demand for the iPhone 17 and record services revenue for the positive results. In addition, the iPhone 17e, iPad Air, and MacBook Neo were included in the product portfolio. Gross profit also increased by nearly $10 billion in the quarter, going from $44.9 billion in the prior-year period to $54.8 billion.

For Q3, CFO Kevan Parekh expects 14% to 17% YOY growth in total revenue, which is well above the analyst consensus estimate of 9.5%. However, the revenue forecast might have been even higher if not for supply constraints. When asked about this by Morgan Stanley analyst Erik Woodring, Cook spoke about the constraints for the quarter being primarily in Mac products. Apple is struggling to keep up with high demand for the Mac Mini and Mac Studio, and Cook said that customers’ response to the MacBook Neo has been “off the charts” as well. The CEO believes it will take several months before Mini and Mac Studio supply catches up with demand. Operating expenses are also expected to be between $18.8 billion and $19.1 billion in Q3, while gross margin is expected to be around 47.5% to 48.5%.

What Do Analysts Say About Apple Stock?

After WWDC 2026, Maxim analyst Tom Forte raised his Apple price target from $310 to $350 and maintained a “Buy” rating. However, Rosenblatt analyst Barton Crockett and UBS analyst David Vogt both maintained neutral ratings on AAPL stock with price targets of $276 and $296, respectively.

Based on 42 analysts with coverage, AAPL stock holds a “Moderate Buy” consensus rating. That breaks down to 23 analysts offering a “Strong Buy” rating, three analysts providing a “Moderate Buy,” 15 analysts offering a “Hold” rating, and only one analyst with a “Strong Sell” rating. The mean price target of $313.61 implies potential upside of 6% from current levels. Analyst price targets go as high as $400 and as low as $235, which suggests that Wall Street remains divided on Apple’s AI capabilities.