Bank of America resets Apple stock price target on AI update
Apple has spent much of 2026 defending itself. Tariff concerns. Questions about AI pace. A market that has rewarded louder AI stories more generously. The stock has still gained over 50% in the past 12 months, but the narrative has been harder to hold.
On May 26, Bank of America analyst Wamsi Mohan made a specific argument for why that narrative has been wrong, and attached a new price target to it.
What Bank of America changed on Apple and the thesis behind it
Mohan raised his price target on Apple (AAPL) to $380 from $330 and reiterated his Buy rating on May 26.
The raise follows a steady progression.
Bank of America set a target of $325 in October 2025, raised it to $330 on May 1 after Apple's Q2 earnings, and now moves to $380 just weeks later.
That acceleration reflects a specific change in how Mohan is thinking about Apple's AI positioning, not just a routine model update.
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Mohan is a top-ranked analyst on TipRanks. His argument in the May 26 note centers on a single thesis: the agentic AI era will favor platforms that control user intent, context, app access, identity, payments, and trust simultaneously.
He argues the smartphone is the only scaled consumer device where all of those factors converge.
Why Mohan thinks Apple wins in an agentic AI world
The core of the call is about architecture, not products. Apple's combination of silicon and iOS gives it direct control over how AI runs on the device: the latency, the privacy model, and the cost structure. That integration, Mohan argues, is not something competitors can easily replicate.
The specific opportunity he is pricing in is a redesigned Siri.
If Apple rebuilds Siri as a true agentic assistant capable of understanding user context across apps, payments, and device activity, Mohan estimates that could add $15 billion to $30 billion in fiscal 2030 revenue under a base adoption scenario. Under broader adoption, that figure climbs to $40 billion to $65 billion.
Those are not modest numbers for a company that already generates more than $400 billion in annual revenue. They also reflect a view that Apple's AI strategy is not behind schedule but simply operating on a different timeline than the market has been measuring it against.
The context that makes this raise more significant than a routine update
Mohan had already signaled his direction on Apple in the May 1 note, when he wrote:
"Reiterate Buy on strong capital returns, eventual winner on AI at the edge and optionality from new products," according to CNBC. The May 26 raise is the follow-through on that call, now extended to incorporate the agentic AI framework specifically.
Supporting that view is a data point from Tim Cook.
The CEO recently said the Mac mini saw stronger-than-expected demand from developers buying it as a local AI workstation, with a shortage expected to last for months. That is a small signal but a meaningful one: Apple's hardware is already becoming an AI development platform, not just a consumer device.
Key figures from Bank of America's May 26 Apple note:
- New price target: $380, raised from $330, Buy reiterated, analyst Wamsi Mohan
- Target progression: $325 in October 2025; $330 on May 1 after Q2 earnings; $380 on May 26 on agentic AI thesis
- Agentic Siri revenue estimate: $15B-$30B in fiscal 2030 under base adoption; $40B-$65B under broader adoption
- Apple stock performance: shares up over 50% in past 12 months; rose 0.5% in premarket on May 26 after the note
- Mohan's core argument: agentic AI favors platforms controlling user intent, context, app access, identity, payments, and trust; Apple's silicon and iOS provide that control
- Mac mini signal: Tim Cook reported stronger-than-expected demand from developers using it as a local AI workstation; supply shortage expected to last months
Source: Bank of America May 26 note
What the $380 target means for investors watching Apple now
The $380 target puts Mohan meaningfully above where most of the Street is currently positioned on Apple. The prior consensus was clustered around $305-$340, making this a deliberate and visible departure from the middle of the pack.
The bet embedded in that target is specific.
It is not that Apple will dominate every AI product launch or win the foundation model race. It is that the company's control over the full device stack, from silicon to operating system to payments to app distribution, gives it structural advantages in a world where AI assistants become the primary interface between users and their devices.
For investors, the question is whether Mohan's agentic AI timeline is achievable.
The $15B-$30B revenue estimate for fiscal 2030 requires a meaningful Siri redesign and broad adoption of AI-assisted workflows across Apple's installed base of over 2 billion active devices. If Apple delivers that, $380 may look conservative. If the redesign takes longer or adoption is slower than the model assumes, the gap between the current price and the target narrows significantly.
The Mac mini data point suggests the foundation is already being laid. The product execution question is what the market is watching for next.
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This story was originally published May 26, 2026 at 11:13 AM.