Apple (NASDAQ:AAPL) has so far failed to excite investors with its AI endeavors and it looks like its AI head has now paid the price for letting Apple fall behind its peers.
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John Giannandrea, Apple’s SVP for Machine Learning and AI Strategy, is stepping down after seven years at the helm of the company’s AI efforts. His departure arrives just as Apple works through delays in rolling out the next wave of Siri’s AI features, though he’ll remain on as an adviser until spring 2026 before retiring.
In his place, Apple is bringing in Amar Subramanya – a respected AI leader who previously served as Microsoft’s corporate VP of AI and spent more than 15 years at Google’s DeepMind. Reporting to Craig Federighi, he’ll oversee Apple’s foundation models, ML research, and AI safety. The shift follows reports of Apple researchers being poached by Meta, OpenAI, and Anthropic, and reflects the company’s broader push to rebuild and expand its AI ranks as it prepares to strengthen Apple Intelligence heading into next year.
Wedbush analyst Daniel Ives thinks the new AI recruit is the correct man for the job. “We believe that Subramanya represents the right hire at the right time with the clock ticking on Apple’s AI strategy heading into next year with outside hires a necessary move to improve the AI strategy,” the 5-star analyst said.
Ives thinks Apple’s “invisible AI strategy” remains the “elephant in the room.” With a massive global footprint of 2.4 billion iOS devices and 1.5 billion iPhones, this is the moment for the company to push much harder on its AI initiatives.
At the same time, Apple’s current share price still doesn’t reflect any “AI premium,” which makes the stock an attractive large-cap tech holding through year-end and into 2026. Innovation coming out of Apple on this front has fallen short so far, and the company needs to keep bringing in outside AI expertise, even if that means paying more to hire external technology leaders who can “change the AI innovation culture.”
All told, Ives sees this as a “major reset” for Apple, and he expects the company will continue bringing in external AI talent to get it back on track AI-wise. This also helps Apple prepare for its AI-driven Siri launch planned for mid-2026, which has been delayed by development issues and now marks a “major turning point” in the company’s trajectory. Ives also anticipates that Google’s Gemini will become Apple’s exclusive AI partner, and with Google’s DOJ victory now behind it, the path is clearer for the two companies to announce a formal consumer-facing AI partnership in the coming months.
“The timing of this AI leadership announcement is smart and lays the seeds for the future AI strategy in Cupertino,” the analyst summed up.
Bottom line, Ives assigns AAPL shares an Outperform (i.e., Buy) rating, while his $320 price target points toward 12-month returns of ~13%. (To watch Ives’ track record, click here)
Elsewhere on the Street, the stock claims an additional 20 Buys, 12 Holds and 2 Sells, for a Moderate Buy consensus rating. However, going by the $289.49 average price target, shares will stay rangebound for the time being. (See AAPL stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.