Apple stock has declined nearly 5% since the start of the year. Despite this, analysts at Evercore ISI have designated AAPL as their top hardware selection for 2026. They point to a strong product cycle and healthy consumer demand as positive factors. A key element for investors is the company's focus on artificial intelligence.
The Siri voice assistant is scheduled to receive a significant AI upgrade. Apple is working on a deeper integration of generative AI into the assistant to improve its contextual understanding. This move is seen as an effort to compete with other AI models such as Gemini and ChatGPT.
Apple possesses the world's largest user base. Providing seamless AI access through its devices could create a major new revenue stream, according to bullish perspectives. Previous delays in perfecting this technology have made some investors cautious.
The company is based in Cupertino, California. AAPL's stock price has doubled over the past five years, though it has underperformed the S&P 500 Index in the last year. In the past month, AAPL is down nearly 7% while the S&P has gained almost 2%.
Apple's valuation remains near historic levels, with a forward price-to-earnings multiple of 31.9 times. Its forward price-to-sales and price-to-cash flow ratios are at a reasonable premium. The launch of an improved AI assistant could shift investor sentiment and potentially drive the stock higher.
Apple will announce its fiscal first-quarter earnings on January 29. More details on the Siri update, expected for a spring launch, are anticipated.
On October 30, Apple reported its Q4 2025 earnings. Earnings per share were $1.85, exceeding the estimate of $1.73. Revenue reached $102.5 billion, with $73.7 billion from Products and $28.8 billion from Services. iPhone sales increased 6% year-over-year.
CEO Tim Cook stated the iPhone 17 lineup is the strongest ever built by the company. Management reported no supply-chain issues affecting product ramp-up, attributing any model shortages to high demand. The company noted that growth in operating expenses is largely due to AI investments. Skeptics continue to question why Apple is not a leader in the AI field.
On Wall Street, 41 analysts cover AAPL stock. Half rate it as a "Strong Buy," while 16 analysts give it a "Hold" rating. The stock has a consensus "Moderate Buy" rating with an average price target of $289.61, suggesting about 11% upside from current levels.