Apple ( AAPL ) was in the spotlight on Tuesday as Bank of America upped its price target on the tech giant, citing a potential boost from agentic artificial intelligence. Shares rose 0.5% in premarket trading. “In an agentic world, value accrues to the platform that controls user intent, personal context, app access, permissions, identity, authentication, payments, and trust,” analyst Wamsi Mohan ...
Apple ( AAPL ) was in the spotlight on Tuesday as Bank of America upped its price target on the tech giant, citing a potential boost from agentic artificial intelligence. Shares rose 0.5% in premarket trading. “In an agentic world, value accrues to the platform that controls user intent, personal context, app access, permissions, identity, authentication, payments, and trust,” analyst Wamsi Mohan wrote in a note to clients. “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.” Mohan raised his price target to $380 from $330 and reiterated his Buy rating on Apple. Delving deeper, Mohan said that the company's benefit in agentic AI comes from its semiconductors and iOS, as Apple's silicon can dictate what happens on a devices (which is important for latency, reliability, privacy and costs) and iOS will determine how the AI is used by the user. “Our analysis around token usage suggests Apple will need to rely on distributed compute (on device), Private Cloud Compute and third-party compute to deliver a robust AI experience,” Mohan added. “Removing the net cash neutral target, in our opinion, is a reflection of a new period of AI-driven investments to enable this agentic era.” As such, Mohan believes that the coming Siri redesign needs to be integrated into the iPhone and make it an agent that is capable of understanding intent, retrieving context, bringing up apps, and completing workflows. If this were to happen, an agentic version of Siri could boost fiscal 2030 revenue between $15B and $30B, or as much as $40B to $65B if users really became acclimated to it. More on Apple 3 Reasons Apple Will Be Booted From The Magnificent 7 By The End Of 2030 Apple Is Priced Like Everything Has To Go Right: It J...