Apple’s (AAPL) AI Roadmap Strengthens With Google Deal, Says Evercore

Core Viewpoint - Apple Inc. is positioned as a significant player in the AI sector, particularly with its new partnership with Google Gemini, which is expected to enhance its AI capabilities and monetization potential [1][2]. Group 1: Partnership Details - Apple has confirmed a multi-year agreement with Google to utilize its next-generation AI models, which will support the anticipated Siri 2.0 upgrade [2]. - The collaboration will leverage Google's Gemini models, which have received positive feedback since the launch of Gemini 3.0 last year [2]. - Apple is expected to pay approximately $1 billion annually to license the ~1.2 trillion parameter model from Google [3]. Group 2: Investment Outlook - Evercore ISI analysts maintain an Outperform rating on Apple with a price target of $330, highlighting the potential for monetization and custom AI experiences from the partnership [1][3]. - The partnership is seen as beneficial for Apple, allowing for an upgrade of its current model stack and paving the way for future monetization opportunities [3].