Dan Ives on Apple: AI chapter is finally underway
Speakers
Dan Ives — Wedbush Securities
— Wedbush analyst
Summary
Dan Ives of Wedbush Securities discusses Apple's AI opportunity, raising his price target to a street-high $400 ahead of WWDC. He also comments on Meta, noting that while it is making the right investments, it has yet to demonstrate AI monetization and user growth has slowed sequentially. Ives remains bullish on Apple's consumer AI revolution and sees Meta as a longer-term story needing near-term proof.
- Dan Ives raises Apple price target to $400, citing the upcoming AI chapter.
- He expects WWDC to launch consumer AI with iPhone integration.
- Apple will generate $10-15 billion in annual services revenue from AI subscription apps.
- Ives views Apple as the 'toll collector' for consumer AI.
- On Meta, Ives says capex spending is correct but results not yet visible.
- Meta's user growth slowdown is seen as a one-off, not a trend.
- Ives believes Meta will monetize AI over time but needs to show progress in coming quarters.
- Google, Amazon, and semis are currently showing more AI earnings momentum than Meta.
Trade Ideas
Apple's AI chapter begins now.
Apple is entering its AI chapter with the upcoming WWDC, which will mark the start of the consumer AI revolution. Apple will act as a toll collector for AI on iPhones, generating incremental $10-15 billion annually from subscription services and apps. This justifies a $400 price target and a bullish stance.
