Morgan Stanley sees Apple moving from AI laggard to leader in 2026

In a bullish move for Apple investors, Morgan Stanley analyst Erik Woodring on Wednesday, reiterated an overweight rating on AAPL stock while hiking the price target from $305 to $315, citing the company’s potential transition from AI laggard to industry leader starting in 2026—driven by an anticipated Siri overhaul leveraging advanced on-device AI capabilities.
Patrick Seitz for Investor’s Business Daily:
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“Apple will become a leading distributor of AI technologies with a Siri re-release in spring 2026,” Woodring said in a client note. Apple’s upgraded Siri digital assistant likely will use Alphabet’s (GOOGL) Google Gemini AI models, he said. News reports point to a March or April launch for the new Siri.
“With this update, we expect Apple to deliver on the long-promised functionality of leveraging users’ on-device information/data, such as Siri’s ability to ‘understand and take action with things on your screen,'” Woodring said.
Further, the company’s Apple Intelligence initiative should accelerate iPhone replacement cycles, Woodring said. He estimates more than 550 million iPhones in use will be unable to run Apple Intelligence exiting fiscal 2026.
In early 2027, Apple might introduce a paid tier for its Apple Intelligence offering with more agentic AI capabilities, Woodring said.
“While AI monetization has likely been in Apple’s future pipeline, we do not expect a paid subscription for a smarter Siri in spring 2026,” he said. “Near-term priorities will center on driving adoption, enhancing the user experience, and positioning Apple as a leading AI distributor.”

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MacDailyNews Note: Morgan Stanley’s Woodring reiterated his “Overweight” (Buy) rating on Apple stock and raised his price target to $315 from $305.

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