"Soap opera" wraps up: why Wedbush thinks Apple's sell-off is unjustified
The market is taking the launch timing of the updated Siri as an indicator of Apple's ability to realize its AI strategy
"Soap opera" surrounding Apple's AI is nearing its finale - Wedbush / Camilo Concha / Shutterstock
Wedbush analysts, led by Wall Street's chief techno-optimist Dan Ives, see an "unwarranted" sell-off in Apple shares due to the negative narrative surrounding the company's AI strategy, Quartz writes. Ives expects the Siri "soap opera" to finally move to the release stage this year, despite recent reports of a possible postponement of the launch of a "personalized" version of the AI assistant, which has caused the company's stock price to collapse. Its market capitalization fell by about $202 billion in a single session on Feb. 12.
Wedbush reiterated a buy recommendation on Apple securities and a target price of $350. This target implies a 32.6% upside potential for the stock.
Apple shares were up 0.1% in premarket trading on Feb. 18, having lost about 3% of their value since the beginning of the year.
Why does Wedbush believe in Apple?
Wedbush urges the market to focus on Apple's next steps: he insists that updates to Siri and other features are still scheduled for the summer. Analysts say 2026 will be the moment when Apple's AI platform is no longer a promise and the company "fully enters the AI game."
That said, Ives believes the market is underestimating the upcoming launch, even if the "long-awaited AI features" will be rolled out in stages through multiple versions of iOS.
Wedbush points to a strengthening of Apple's management. Last December, Amar Subramanya, who previously worked at Microsoft and Alphabet and led the development of chatbot Gemini, took over the AI development department. Ives also recalled the partnership with Google, a multi-year agreement under which the next generation of Apple Foundation Models will be based on Gemini models and Google's cloud infrastructure. The companies have stated that these models will be the foundation for future Apple Intelligence features, including Siri.
Instead of competing in a "model race" on paper, Apple is betting on distribution: implementing AI at the device level - with a focus on privacy, integration into the ecosystem and monetization through its own billing system, Wedbush analysts note.
They also suggest shifting the focus from "will Siri get smarter?" to "can Siri generate revenue?". The research note says that "AI monetization" has the potential to add between $75 and $100 to Apple's share price in the coming years. Ives expects to launch an AI-powered subscription service by the fall and is targeting about 2.5 billion iOS devices and 1.5 billion iPhones.
Pessimistic scenario
Wedbush analysts warn that in a negative scenario, further delays to the launch of an updated Siri could add pressure to Apple's stock. If 2026 once again turns into a series of demos and postponements, the market will continue to see Siri as a test of the company's credibility, the note said.
Ives admits that serious delays will be a "heavy burden" for quotes. Recent dynamics show that investors are willing to further lower valuations until the updated Siri demonstrates stable performance in real-world conditions, Quartz notes.
What's going on at Apple
As Bloomberg reported last week, citing sources, problems in the testing phase could lead to the postponement of some of the "personalized Siri" features originally planned for iOS 26.4, which is expected in March. According to the agency's interlocutors, they may be delayed until the next, May version of iOS 26.5, and some features may even be delayed until September's iOS 27.
In a comment to CNBC on Feb. 12, the company said it still plans to unveil an updated Siri in 2026, without specifying a specific month. At the presentation on March 4, the AI direction is not expected to be the central theme again, Quartz writes.
What are other analysts saying?
On February 10, analyst Bernstein raised the target price of Apple shares from $325 to $340, also noting the upcoming launch of Siri 2.0 and confirming the recommendation to buy these securities. The new target is 29% higher than the quotes at the last close.
There are significantly more optimists about Apple on Wall Street: 32 out of 51 analysts covering the company's stock recommend buying it. 17 are cautious and suggest keeping the already bought securities in the portfolio. Only two analysts gave a recommendation to sell.
This article was AI-translated and verified by a human editor
