Apple needs to deliver – or buy in external AI

With Apple Intelligence, Apple is focusing on artificial intelligence – a topic that is currently occupying the entire tech industry. Expectations for Apple are high, especially because other tech giants like Google, Microsoft, and OpenAI have already made visible progress. This year's developer conference, WWDC 2025, demonstrated the first concrete steps toward Apple's implementation of its AI strategy. At the same time, it's clear that if nothing more happens in the coming months, Apple could be forced to acquire larger AI companies to stay ahead of the game.

Apple's presentation at WWDC 2025 was characterized by restraint. Although its own AI platform, Apple Intelligence, was discussed, the major wow effect was missing. Many investment firms agree. Analysts like Daniel Ives from the financial firm Wedbush say that while Apple has a plan, it hasn't shown any real progress so far. Ives emphasizes that while Apple has opened the door to third-party developers with Apple Intelligence, overall the presentation was more cautious than visionary. The reason for this lies in WWDC 2024. Back then, Apple had raised high expectations that were subsequently unfulfilled. Apple apparently deliberately didn't want to overpromise this year. This strategy is understandable – but it also carries risks. In an environment where competition is advancing very rapidly, too much restraint can come across as a weakness.

Apple under pressure: Next year will be crucial

Daniel Ives makes it clear that the coming year will be crucial for Apple. According to him, progress with Apple Intelligence is at the top of investors' lists. Apple therefore has little time to demonstrate that its AI strategy works beyond paper. If the company fails to deliver within this time, it could be forced to resort to other means—such as major acquisitions in the AI space.

Previous acquisitions: Small, targeted, little public

Apple regularly acquires smaller companies, but rarely discusses them publicly. The company is only required to disclose such acquisitions if they exceed a certain size. Especially in the AI sector, Apple has acquired several smaller companies in recent years. Some of them specialized in calendar functions or manufacturing processes. The exact companies involved are only partially known publicly. One thing is clear: The acquisitions to date have been selective, but not strategically large enough to significantly advance Apple Intelligence.

What analysts expect: Large AI acquisitions conceivable

According to Wedbush, this could soon change. Ives believes that the increasing pressure to succeed could lead Apple to stop acquiring only small AI companies and instead specifically seek out larger players. He doesn't name specific names, but the logic is clear: If Apple wants to make visible progress with Apple Intelligence in a short time, it needs either fast-acting technologies or experienced AI teams – both of which can be achieved most quickly through acquisitions. Wedbush nevertheless expresses confidence that Apple could successfully implement this step. Confidence in the long-term strategy is there, even if short-term implementation still has room for improvement.

Wedbush valuation: Price target remains at $270

Despite the rather muted reactions to WWDC 2025, Wedbush maintains its positive assessment. The price target for Apple shares remains at $270. The financial firm had already set this valuation in May 2025 – at the time, however, less because of the AI plans than because of Apple's ability to mitigate economic challenges such as the new tariffs imposed under Donald Trump. However, Wedbush expects Apple Intelligence to become a significantly stronger driver of the share price in the coming months.

Apple between caution and pressure to act

Apple is at a critical juncture in the field of artificial intelligence. WWDC 2025 demonstrated initial steps but delivered no major breakthroughs. Analysts like Daniel Ives see the next twelve months as the crucial period in which Apple must prove that Apple Intelligence is more than just a name. If the company fails to make sufficient progress during this time, larger AI acquisitions may become necessary. So far, Apple has primarily acquired smaller companies, but investors now expect more. Whether Apple lives up to these expectations depends on how quickly and decisively the company acts in the coming months. The foundation has been laid – now execution counts. (Image: Shutterstock / SnapASkyline)