Wedbush's Dan Ives Thinks Apple Stock Could Surge 35% in 2026 If It Partners with Google Gemini

Long-standing Apple bullish analyst Dan Ives of Wedbush believes that the stock of the tech giant could see a rise of 35% this year. Ives has set a 12-month target price of $350 (£259) for Apple, which currently stands as the highest forecast among Wall Street analysts.

Ives argues that for Apple's stock to reach this target, forming a partnership with Google's Gemini AI platform is essential to addressing what he describes as the company's 'invisible AI strategy'. Over recent years, Apple has faced criticism for its relatively slow progress in establishing itself as a major player in artificial intelligence. Unlike some of its competitors, Apple has yet to demonstrate a clear leadership position in AI innovation.

Google's parent company, Alphabet, managed to navigate a US Justice Department ruling in 2025 with minimal disruption. Ives suggests this could pave the way for a potential Gemini partnership with Apple, which might significantly enhance the user experience for iPhone users seeking AI-driven assistance.

While such a partnership could improve AI query handling, Ives emphasises that investors will still look for Apple to demonstrate tangible progress in its own AI advancements. Relying solely on external technologies would not be sufficient to satisfy market expectations.

'Developers and consumers are waiting patiently for the release of the new and improved Siri in the March/April timeframe,' Ives wrote in a recent research note to clients. He added that this could open the door to an AI-based subscription service, enabling Apple to monetise its large user base more effectively.

Ives Positive on iPhone 17 Momentum

Ives maintains a positive outlook on the momentum of the iPhone 17, suggesting that the device has the potential to 'handily exceed current Street estimates' in 2026.

'We are seeing strength in the China market in particular, which should continue for Apple as a growth tailwind heading into the tail end of this iPhone 17 cycle and kicking off iPhone 18 this September,' Ives explained.

He also believes that the autumn period will be crucial for Apple, especially with rumours of a foldable iPhone expected to be announced around that time. Ives forecasts that Apple could also increase prices for the next iteration of the iPhone Pro and Pro Max models by approximately $100 (£74), citing rising production costs. Historically, Apple has maintained consistent pricing for comparable models over the past few years, while removing some lower-priced configurations.

Tim Cook Remains Best for Apple's Future

There is ongoing debate among investors and market analysts regarding Apple's leadership. Some question whether Tim Cook remains the right person to steer the company forward. While Cook's expertise in supply chain management is widely acknowledged, critics argue that he has struggled to position Apple as a leader in emerging product categories, including artificial intelligence.

According to The New York Times, Apple's head of hardware engineering, John Ternus, is among the potential candidates being considered for the CEO role. However, Ives holds a contrarian view, asserting that Cook remains the best leader for Apple's future. He believes that it would be beneficial for the stock if Cook publicly confirmed his intention to remain as CEO, especially amid speculation that he might step down this year.

Ives is confident that 'Cook will be CEO of Apple at least through the end of 2027 as this remains an integral period for Cupertino to design and execute on its broader AI revolution strategy.'

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