New $380 Bank of America AAPL target puts AI in the spotlight

Bank of America just gave Apple one of Wall Street’s most aggressive price targets yet after betting that AI could become the company’s next major growth engine, rather than just another iPhone feature.

The firm raised its Apple price target to $380 from $330 on Tuesday, arguing that “agentic AI” could become a major long-term revenue driver for the company. Bank of America believes Wall Street continues to underestimate Apple’s AI revenue potential across its ecosystem.

Bank of America had previously trimmed its Apple target to $320 in March 2026 over concerns tied to staggered iPhone launch timing and shifting revenue seasonality. The firm maintained a Buy rating at the time and continued to argue AI would remain a major long-term growth driver for Apple.

Bank of America analyst Wamsi Mohan kept a Buy rating on Apple stock and laid out a bullish case for the company’s AI strategy. The note argued Apple could generate far more revenue from AI services than investors currently expect.

The note also pointed to Apple’s slower rollout of Apple Intelligence features relative to rivals. Bank of America expects Apple to generate between $15 billion and $30 billion in AI-related revenue between its own offerings and App Store commissions by fiscal 2030 under its base-case assumptions.

Bank of America tied that outlook to the rise of “agentic AI,” a term used for AI systems that can complete tasks more autonomously across apps and services.

Wall Street’s Apple AI narrative is changing

Some analysts are starting to view Apple’s AI business differently. Earlier Wall Street discussions around Apple Intelligence focused on Siri delays, staggered feature rollouts, and concerns that Apple had fallen behind rivals in generative AI.

Morgan Stanley has taken a more aggressive view on Apple stock in recent months. The firm raised its Apple price target to $315 in December 2025 and pointed to long-term growth opportunities tied to AI, Services, and the strength of Apple’s ecosystem.

Apple has focused its AI strategy on private, on-device processing and tighter integration across the iPhone, iPad, and Mac. The company has also argued that its control over hardware and software gives it an advantage as AI tools gain deeper access to personal data, apps, and payment systems.

Apple is betting long-term on Apple Intelligence

Bank of America’s revised outlook centers on that broader ecosystem strategy. The note reportedly focused less on Apple leading the race to build large language models and more on the company turning AI into a services and ecosystem layer across its devices.

Through that lens, Apple’s AI strategy becomes less about standalone chatbot features and more about long-term platform growth.

Apple stock has traded on steady iPhone demand, Services growth, and aggressive share buybacks. Bank of America’s new $380 price target suggests the firm sees AI becoming a more meaningful long-term driver of Apple’s valuation.

The company hasn’t publicly detailed long-term revenue expectations tied to Apple Intelligence or future Siri capabilities. Apple is expected to discuss additional AI features during WWDC in June 2026.