Despite handily beating Wall Street expectations for its fiscal first-quarter 2026 results, Apple (AAPL) has drawn warnings from some commentators that artificial intelligence could pose an “existential threat” to the company. However, Bank of America’s five-star analyst Wamsi Mohan takes a different view, arguing that Apple will be the “eventual winner in AI at the edge.”
Claim 50% Off TipRanks Premium
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis and maximize your portfolio's potential
In other words, he expects Apple to become the long‑term leader in running AI directly on devices such as iPhones and AirPods. Reflecting his upbeat view, the top BofA analyst reaffirmed his Buy rating on Apple and raised his price target to $325 per share, implying around 26% upside.
Why BofA Is Confident of Apple’s AI Position
This AI at the edge opportunity is especially significant given that Apple now has a record 2.5 billion active devices in use, including iPhones, iPads, and Macs. The analyst expects this to provide a vast installed base to drive double‑digit growth in Apple’s high‑margin Services segment, which includes the App Store, iCloud, and other subscriptions.
Mohan ranks 110th out of 12,040 Wall Street analysts tracked by TipRanks, with a 62% success rate and an average return of 25.10%.
Additional Pillars of BofA’s Apple Thesis for 2026
Mohan’s bullish stance also rests on several additional factors:
- Apple is seeing a record pace of iPhone upgrades globally, including in China, with iPhone sales reaching $85.3 billion out of the company’s $143.76 billion in quarterly revenue.
- Apple’s gross margin outlook remains on an upward trajectory despite higher memory costs, with new guidance of 48%–49% above consensus expectations.
- An AI‑enhanced Siri is slated for launch this year, with a foldable iPhone expected in September.
- Apple continues to return substantial capital to shareholders, having distributed more than $28.6 billion last quarter via $3.9 billion in dividends and $24.7 billion in share buybacks.
Is Apple a Buy, Hold, or Sell?
On Wall Street, Apple’s shares currently hold a Moderate Buy consensus rating from analysts based on 18 Buys, 11 Holds, and two Sells issued over the past three months.
In addition, the average AAPL price target of $298.95 implies about 16% upside.
