This article may contain affiliate links. Learn more on our Partner Program page.
Bank of America is currently among the most optimistic voices on Wall Street when it comes to Apple. With a new price target of $380, the major US bank is sending a clear signal: Artificial intelligence is expected to be Apple's next big growth driver – and the market continues to underestimate its potential.
Bank of America significantly raised its price target for Apple stock on Tuesday, from $330 to $380. This makes the bank one of the most bullish voices on Wall Street. Analyst Wamsi Mohan – the same analyst who raised the price target to $260 in the fall of 2025 after Google's search business was upheld in antitrust proceedings – maintains his buy rating and now explicitly cites artificial intelligence as a long-term revenue driver.
What's behind the $380 price target?
At the heart of this new assessment is a term currently causing a stir in the tech industry: agentic AI. This refers to AI systems that can perform tasks largely independently across multiple apps and services. Mohan sees Apple's greatest untapped opportunity precisely in this category.
Bank of America predicts that Apple will generate between $15 billion and $30 billion in AI-related revenue by fiscal year 2030. This range includes both Apple's own offerings and App Store commissions generated by third-party AI apps. The argument is that the market currently barely factors this component into Apple's valuation.
Background to a price target increase
In March 2026, Bank of America had previously lowered its Apple price target to $320 – due to concerns about staggered iPhone launches and changing sales seasonality. The buy rating remained unchanged at that time, as did the conviction that AI would become the decisive growth driver in the long term. With the current increase to $380, this strategic focus is priced much more aggressively than before.
Mohan also points to a feature long considered a weakness: Apple is rolling out its intelligence capabilities more slowly than its competitors. From Bank of America's perspective, however, this caution is not a problem, but rather part of its growth strategy. Apple could leverage its late entry into a broad platform role – with an AI layer that permeates the entire ecosystem.
Ecosystem instead of chatbot race
What's remarkable is the shift in the arguments on Wall Street. Previous discussions surrounding Apple focused primarily on Siri delays, staggered feature rollouts, and concerns that Apple might fall behind in generative AI. Now, analysts are increasingly looking at a different lever: the integration between hardware, software, and services.
Apple's AI strategy relies on private, on-device processing and tight integration across iPhone, iPad, and Mac. The company has repeatedly emphasized that control over hardware and software provides a crucial advantage - especially when AI tools delve deeply into personal data, apps, and payment systems. This interpretation aligns with Apple's own position that Siri 2.0 is just the beginning of a long-term AI transformation.
Bank of America bases its assessment precisely on this platform logic. The report portrays Apple less as a competitor in building large-scale language models and more as a provider of a service and ecosystem layer that makes AI capabilities accessible. From this perspective, Apple's AI strategy becomes a long-term growth driver for the platform itself, not an isolated chatbot race.
Other institutions are also becoming more bullish
Bank of America's optimistic outlook is not unique. Morgan Stanley had already raised its price target to $315 in December 2025, emphasizing long-term growth opportunities stemming from AI, services, and ecosystem strength. Other firms, such as Evercore and Wedbush, have also gradually adjusted their price targets upward in recent months.
Apple's stock is currently being driven by stable iPhone demand, a strong services business, and aggressive share buybacks. With its new $380 price target, Bank of America is adding what was previously only partially priced in: AI as a standalone valuation factor. Should this thesis prove true, Apple's stock story in the coming years is likely to be driven much more by software and services revenues than by pure hardware cycles.
What Apple itself has made public
Apple has not yet released any concrete long-term revenue forecasts related to Apple Intelligence or upcoming Siri features. However, further details on AI capabilities are expected at WWDC in June 2026. The conference on June 8th is therefore likely to become a key reference point for the analyst industry – not least because it will reveal how far Apple has actually progressed in implementing its AI strategy.
The difference between current market expectations and Bank of America's $380 scenario shows one thing above all: Wall Street is beginning to seriously evaluate Apple's AI strategy – and no longer solely based on a single feature. (Image: Shutterstock / Golden Dayz)
Disclaimer: No recommendation for investments
This article does not constitute financial or investment advice. The information contained herein is for journalistic and informational purposes only. Please conduct your own research or consult a financial advisor before making any investment decisions.
- iOS 26.6 Beta 1: Apple surprisingly launches a new testing phase
- Ferrari Luce: Apple's former design chief designs the first electric Ferrari
- Apple takes US government to court in DOJ case
- Apple is preparing a new "Gen AI" website ahead of WWDC 2026
- Mysterious Apple over-ear headphones appear in FCC database
- WhatsApp is working on a central hub for the online status of contacts
- Apple releases post-quantum code on GitHub
- Google appeals: Apple chose Google Search "fairly and honestly"
- iOS 26.5.1 is in testing – release expected in the next few days
- Apple becomes smartphone market leader for the first time in a first quarter
- Chase launches in Germany – what that means for an Apple Card in this country
- Apple is taking the Epic Games dispute to the Supreme Court
- iPhone sales in Latin America: 31 percent growth, Mexico with record jump
- Silo Season 3: New teaser reveals crucial twist for Juliette
- Apple TV broadcasts its first major live sporting event entirely on iPhone 17 Pro
- tvOS 27 brings enlarged text to the Apple TV 4K
- Apple Music publishes open letter on its handling of AI music
- iOS 27 automatically subtitles personal videos
