Tech giant Apple (AAPL) is working on new chips that will power its upcoming products, such as smart glasses, AI servers, and more advanced Macs. Indeed, the company has made progress on the chip for smart glasses, which are expected to compete with Meta’s (META) Ray-Ban models. These chips, based on Apple Watch technology, will use less energy and control the multiple cameras that are planned for the glasses. Mass production could begin in late 2026 or 2027, and Taiwan Semiconductor Manufacturing Co. (TSMC) will handle the manufacturing. While AR smart glasses are still years away from being practical, Apple is exploring simpler non-AR glasses, which use cameras and AI to assist users.
Apple is also adding AI capabilities to other devices. In fact, it plans to put cameras in future AirPods and smartwatches to make them smarter by using chips called Nevis (for Apple Watch) and Glennie (for AirPods). On the iPhone, Apple already uses AI through its Visual Intelligence feature, which can scan images and provide useful information, such as adding event details from posters to the calendar. For Macs, Apple is preparing new chips like the M6, M7, and Sotra, while the current M5 chip will be used in upcoming iPad Pro and MacBook Pro models later this year.
In addition, Apple is developing chips specifically for AI servers to handle tasks related to its Apple Intelligence platform more efficiently. This project, which is called Baltra, could be ready by 2027 and may include chips with up to eight times the processing power of today’s M3 Ultra chip. These chips will help speed up AI services and make Apple more competitive in this space. Apple is also working on future iPhone modem chips (C2 and C3), as well as a new sensor and chip for the Apple Watch that will noninvasively measure glucose levels.
Is Apple a Buy or Sell Right Now?
Overall, analysts have a Moderate Buy consensus rating on AAPL stock based on 17 Buys, eight Holds, and four Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average AAPL price target of $228.65 per share implies 15% upside potential.
