Apple's AI Story Could Be Worth $75 a Share Faizan Farooque Thu, October 8, 2026 at 2:35 PM EDT AAPL +1.02% Trade Apple on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
Apple Inc. (AAPL, Financials), the consumer technology company, could get much more from artificial intelligence than a collection of new software features if Dan Ives is right.
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The analyst estimates Apple's AI strategy could eventually add about $75 per share to the company's valuation as the technology encourages customers to upgrade devices and spend more on services.
Ives, who has an Outperform rating and $400 price target on Apple, believes AI can connect the company's hardware, software and services more closely. He estimates AI-related revenue could eventually represent more than 15% of Services revenue.
The installed base makes that argument particularly important.
Ives estimates roughly 375 million iPhones have not been upgraded in more than four years. He expects the iPhone 18 cycle to help unlock some of that pent-up demand over the coming quarters.
A foldable iPhone could provide another catalyst. Ives expects the rumored iPhone Duo to sell about 10 million units over its first few quarters.
The bigger question for investors is whether Apple can turn its enormous device base into an AI distribution advantage. Privacy and on-device processing could differentiate its approach, while new applications in health, fitness, finance and gaming could expand monetization.
The next catalyst comes with Apple's expected Oct. 13 smart-home event, which could offer another look at how the company plans to extend its ecosystem.
