Apple CEO Tim Cook announced the company’s plans to invest significantly in AI and potentially acquire other companies to enhance its capabilities. Multiple analysts raised their price targets for Apple stock following strong quarterly results. Analysts believe this emphasis on AI could lead to a successful iPhone cycle in 2026.

JPMorgan analysts praised Cook’s aggressive approach towards investing in AI to boost competitiveness. The bank maintained an “overweight” rating for Apple stock and raised its price target to $255. This move suggests a 22% upside potential, with features like AI-enhanced Siri expected in 2026.

Citi analysts also raised their price target for Apple stock to $240, citing increased AI spending and the possibility of an acquisition in the sector. Cook confirmed on the earnings call that Apple is considering purchasing other companies to strengthen its AI capabilities.

Wedbush analyst Dan Ives suggested that Apple may target AI startup Perplexity to enhance its AI efforts. Reports indicate that Apple has had discussions with developers Anthropic and OpenAI for their AI models. Jefferies raised its price target to $191, while UBS kept a “neutral” rating and raised its target to $220.

Read more at Yahoo Finance: What Analysts Are Saying About Apple’s AI Ambitions After Strong Quarterly Results