Apple Could Be Best Positioned to Benefit From AI Hardware ‘Revolution,’ Analyst Says
By Angela Palumbo
Updated Sept 16, 2025, 2:20 pm EDT / Original Sept 16, 2025, 2:00 pm EDT
Apple could be the top beneficiary from on-device artificial intelligence updates that are expected to come in the months ahead, one Bernstein analyst said.
Mark Newman initiated coverage of Apple with an Outperform rating and $290 price target Monday night.
“As the gateway to the Intelligence Revolution, Apple is well positioned to reap rewards from AI,” Newman wrote in a note.
Shares of Apple were up 1.1% to $239.20 on Tuesday.
Newman pointed to Apple’s potential benefits as on-device AI makes changes to hardware. On-device AI runs right on a phone or personal computer as opposed to in the cloud. Apple uses both on-device AI and private cloud compute to power its AI software, Apple Intelligence.
Other companies, such as Microsoft INTC, also have on-device AI for their AI PCs.
Apple is positioned to gain the most from on-device AI, Newman noted—and is also the most at risk if it is poorly executed.
Apple investors are looking for an AI win.
Shares have fallen 4.8% this year, compared with the 12% rise of the S&P 500. Wall Street’s top concern has been lagging AI software. While Apple has launched features that help users automatically respond to text messages and create unique Genmojis, the general consensus has been that Apple Intelligence capabilities aren’t top of the line—yet.
The most anticipated Apple Intelligence update right now is the enhanced Siri chatbot, which is expected to launch sometime next year. Until then, investors have to decide if Apple’s AI will excite customers enough to get them to upgrade their devices, or just prevent them from switching over to competing smartphone companies that offer their own AI capabilities.
“We continue to view Apple’s core asset—the most lucrative and sticky 1 billion users as highly attractive, which provides significant potential upside from AI if executed well,” Newman wrote.
He added that Apple users “have high brand loyalty and are less concerned about AI features, suggesting that Apple has time to catch up on AI.”
Write to Angela Palumbo at angela.palumbo@dowjones.com |
