Is Apple’s Stock Selloff Overdone? AI Delay Concerns Could Be An Opportunity

Apple’s stock (NASDAQ: AAPL) has come under pressure in recent weeks as markets digest concerns over potential delays to the company’s artificial intelligence features, particularly enhancements to Siri. The selloff has prompted questions about whether Cupertino has fallen behind in the AI race, but at least one prominent analyst believes the market reaction is excessive.

Shares in the iPhone maker have declined notably from recent highs, with investor anxiety centered on reports suggesting Apple may postpone the rollout of AI-enhanced Siri features to May 2026 due to software challenges. The concerns have been compounded by regulatory scrutiny, including a Federal Trade Commission investigation into Apple News over alleged political bias. The confluence of these factors has weighed on sentiment, pushing the stock lower despite the company’s robust fundamentals and massive installed base.

Wedbush Securities analyst Dan Ives has pushed back against the negative narrative, arguing that the recent selloff is unwarranted. The firm maintains an Outperform rating on Apple stock with a price target of $350, representing significant upside from current levels. Ives emphasizes that the focus should be on Apple getting its AI strategy right rather than rushing features to market, noting that the advanced AI capabilities targeted for summer release still appear on track.

The analyst’s confidence stems from several strategic developments that differentiate Apple’s current AI approach from past missteps. The company has forged a strategic partnership with Google’s Gemini AI platform and appointed new external AI leadership, signaling a more deliberate and focused integration strategy. These moves suggest Apple is taking a methodical approach to ensure its AI offerings meet the company’s typically high standards for user experience and reliability.

Wedbush’s analysis acknowledges potential near-term headwinds but maintains a constructive long-term view. In a worst-case scenario, Ives estimates that AI delays could defer approximately ten million iPhone shipments to the next fiscal year. Despite this risk, the firm expects iPhone sales to reach between 225 million and 230 million units in 2025, climbing to between 245 million and 250 million in 2026. These projections underscore confidence in sustained demand despite timing uncertainties around AI feature rollouts.

The monetization potential of Apple’s AI strategy forms a cornerstone of Wedbush’s bullish thesis. The firm projects that AI-driven revenue opportunities could add $75 to $100 per share to Apple’s valuation over the next several years. This outlook is underpinned by the company’s massive ecosystem of over 2.4 billion iOS devices and 1.5 billion iPhones worldwide, creating an unparalleled platform for deploying AI features at scale. The anticipated integration of Google’s Gemini AI model is expected to significantly enhance Siri’s capabilities, potentially driving increased user engagement and opening new revenue streams through subscriptions or premium services.

Markets have endured what Ives characterizes as a year-long soap opera regarding Cupertino’s AI strategy, with concerns mounting that Apple has lagged competitors in embracing generative AI technologies. However, the analyst contends that the current situation is fundamentally different from previous strategic delays, pointing to concrete partnerships and leadership appointments as evidence of meaningful progress.

Apple’s track record of delivering polished, user-friendly products suggests the company’s deliberate approach to AI integration could ultimately prove advantageous, even if it means accepting short-term delays. Whether the selloff proves overdone will depend on Apple’s ability to execute on its summer AI rollout targets and demonstrate tangible progress in closing the perceived gap with competitors. For now, Wedbush’s conviction suggests that markets may be underestimating Apple’s capacity to deliver on its AI ambitions.