Apple(US:AAPL) The Motley Fool·2025-12-12 07:00Core Insights - The rise of artificial intelligence (AI) has significantly impacted the technology sector, with companies like Nvidia and Apple benefiting from this trend [1][5]. Company Performance - Nvidia has experienced a remarkable stock surge of 975% over the past three years, driven by high demand for its AI-centric GPUs, while Apple has seen a more modest increase of 95% during the same period [5]. - Apple is expected to enhance its performance in the AI space, with a Wall Street analyst predicting it could outperform Nvidia in the coming year [3][6]. Analyst Insights - Wedbush analyst Dan Ives has raised Apple's price target to $350 from $320, indicating a potential upside of 26% from its recent closing price [6]. - Ives believes that 2026 will be a pivotal year for Apple as it begins to implement a comprehensive AI strategy, highlighted by the hiring of AI expert Amar Subramanya [7][8]. AI Strategy - Subramanya's expertise in AI and machine learning will be crucial for Apple's innovation and future AI features, particularly in enhancing Siri, Apple's voice assistant [9][10]. - A potential partnership with Google for an AI overhaul of Siri could significantly boost Apple's AI ambitions and market interest [9]. Product Performance - Ives notes that iPhone 17 sales are performing well, with expectations for a strong finish to the year due to the holiday season [11]. - Apple's large installed base of 2.4 billion iOS devices, including 1.5 billion iPhones, presents a significant opportunity for growth, potentially increasing the stock value by $75 to $100 per share [12]. Market Capitalization - If Apple reaches the price target of $350, its market cap could rise to $5.17 trillion, surpassing Nvidia's projected market cap of $5.1 trillion if it hits a target of $210 [13][14].