Apple Inc. (NASDAQ:AAPL) has long stood as a symbol of innovation, with the iPhone, iPad, and MacBook transforming consumer technology over the last two decades. Yet, in today’s rapidly evolving artificial intelligence (AI) landscape, even Apple faces the risk of falling behind. The Apple AI strategy is now the subject of intense debate among Wall Street analysts, with some suggesting the company could face its own “BlackBerry moment” if it doesn’t act decisively.

The AI Race Heats Up

Generative AI has been called the most disruptive technological force in nearly 40 years. Rivals such as Microsoft (NASDAQ:MSFT), Alphabet (NASDAQ:GOOGL), and Meta Platforms (NASDAQ:META) are investing billions into AI talent, acquisitions, and infrastructure. For them, the race is not about experimenting with AI — it’s about redefining the future of technology.

Apple, by contrast, has appeared hesitant. Critics argue that its AI push is “invisible” compared to competitors. Wedbush Securities analyst Dan Ives even warned that without dramatic changes, Apple risks repeating the mistakes of BlackBerry (NYSE:BB), which once dominated smartphones but collapsed after failing to adapt to the iPhone.

Apple Stock Overview

Founded in 1976, Apple has a $3.4 trillion market capitalization, making it the world’s third-largest company. Its ecosystem — spanning iPhones, MacBooks, wearables, and services — generates massive profits. Recently, AAPL stock surged 13% in a single week after CEO Tim Cook announced a $100 billion U.S. production investment alongside President Donald Trump. The rally provided relief to shareholders, though shares remain down 7.8% year-to-date.

Still, the Apple AI strategy remains a key question mark for investors.

Three Critical Steps for Apple’s AI Future

Dan Ives recently outlined three urgent actions Apple must take to avoid falling behind in the AI revolution:

1. Acquire Perplexity AI

Apple has long avoided large acquisitions, preferring internal development. But Ives argues that strategy won’t cut it in AI. Instead, he recommends Apple acquire Perplexity AI, a next-generation search engine powered by advanced AI algorithms. A $30 billion deal would be “a drop in the bucket” compared to Apple’s cash reserves, but it could transform Siri and position Apple as a real contender in AI search and digital assistants.

2. Bring in Outside AI Talent

Another flaw in Apple’s AI approach is the departure of top researchers to competitors such as Meta, OpenAI, and xAI. Ives insists Apple must hire external executives with deep AI expertise to accelerate innovation. Without fresh leadership, he warns, Apple risks recycling old ideas instead of driving transformative breakthroughs.

3. Partner with Google Gemini

Finally, Ives suggests Apple should strengthen its collaboration with Google’s Gemini AI. Integrating Gemini into iPhones could deliver immediate AI benefits to Apple’s 2.4 billion-device ecosystem. While regulatory hurdles may arise, Ives believes doubling down on Gemini is the “right strategic bet” to keep Apple competitive.

Apple’s Broader AI Plans

Interestingly, Bloomberg reports suggest Apple is already exploring a bold expansion of its AI strategy. The company is reportedly developing lifelike home robots, a smarter Siri, a display-equipped smart speaker, and home-security cameras. A tabletop robot, envisioned as a virtual companion, could debut by 2027, while new smart-home devices are expected as early as next year.

These initiatives show Apple may be preparing an AI comeback, aiming to reignite its reputation for innovation and tighten consumer loyalty within its ecosystem.

Analyst Outlook on AAPL Stock

Despite concerns over Apple’s AI position, Wall Street analysts remain generally bullish. Out of 38 analysts, 19 rate the stock a “Strong Buy,” while only two recommend selling. The consensus price target is $235.56, with a high target of $300 — suggesting nearly 30% upside potential.

For investors, the key question is whether Apple can execute a clear and aggressive Apple AI strategy that prevents it from becoming the next BlackBerry. With its vast resources, consumer base, and brand loyalty, Apple has the tools — but it must move quickly.

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