Apple Inc. (AAPL) is holding its Worldwide Developers Conference the week of June 8. There is always positive news from WWDC. Meanwhile, Bank of America just raised its target price from $330 to $380 and reiterated its “Buy” rating, notes Michael Murphy, editor of New World Investor.
BofA cited a potential boost from agentic Artificial Intelligence. The firm's analyst wrote: “In an agentic world, value accrues to the platform that controls user intent, personal context, app access, permissions, identity, authentication, payments, and trust.”
Apple Inc. (AAPL)
BofA added: “Smartphone is the scaled consumer device where these factors already converge. If AI assistants become the new front door to search, apps, commerce, scheduling, payments, and workflow completion, we think Apple should have meaningful leverage over model providers, app developers, merchants, advertisers, and payment networks.”
The firm thinks Apple’s advantage in agentic AI comes from its semiconductors and iOS, as Apple’s silicon can dictate what happens on a device (which is important for latency, reliability, privacy, and costs) and iOS will determine how the AI is used by the user.
Added BofA: If the coming Siri redesign is integrated into the iPhone to become an agent that is capable of understanding intent, retrieving context, bringing up apps, and completing workflows, an agentic version of Siri could boost fiscal 2030 revenue between $15 billion and $30 billion. It could even hit $40 billion to $65 billion if users really became acclimated to it.
I agree, but from a different viewpoint. If the Siri upgrade isn’t an effective agent, which is the most likely outcome, we’ll probably exit the stock for now.
