Wedbush's Dan Ives: Apple's AI Strategy Lacks Visibility

Apple's AI strategy is invisible, according to Wedbush Securities' Dan Ives. Ives believes Apple is lagging in the AI race, despite being a leader in the tech industry. He notes that the company's AI efforts are not as prominent as those of other tech giants, such as Google and Microsoft. Ives warns that it may be too late for Apple to effectively enter the AI market.

Dan Ives, Wedbush Securities' global head of tech research, recently joined 'Fast Money' to discuss Apple's AI strategy. Ives asserts that Apple's AI efforts are "essentially invisible," suggesting the company is lagging in the AI race compared to other tech giants like Google and Microsoft [1]. This perspective contrasts with Apple's robust financial performance and strategic investments in AI.

Apple's June quarter results demonstrated significant growth, with iPhone revenue surging 13% year-over-year, driven by the A18 Pro-powered iPhone 16 family optimized for on-device AI workloads. Mac sales increased by 15% to $8 billion, boosted by the success of the M4 MacBook Air. Services, which generated record-breaking revenue of $27.4 billion (up 13%), are a key driver of Apple's AI growth, enhancing features like smarter suggestions in Apple Music and improved recommendations in Apple TV+ [2].

Apple's AI strategy is deeply integrated on-device, prioritizing privacy, personalization, and a seamless user experience. This approach contrasts with competitors who rely heavily on cloud-based AI. Apple CEO Tim Cook described AI as "one of the most profound technologies of our lifetime" and has invested heavily in it, with a $500 billion commitment over the next four years, focusing on AI, advanced manufacturing, and silicon engineering [2].

Despite its substantial investments, Apple's AI strategy remains under the radar, according to Ives. He suggests that Apple's late entry into the AI market may make it difficult for the company to catch up with competitors who have already established strong AI footholds. However, Apple's financial strength and brand power provide a solid foundation for its AI ambitions.

The market's perception of Apple's AI strategy may be evolving. Apple's stock has dipped 18.6% year-to-date, but analysts rate it a "Moderate Buy," with an average price target of $233.83, projecting a potential upside of around 15% from current levels [2]. This suggests that investors are beginning to recognize Apple's AI potential, even if its strategy is currently "invisible."

In conclusion, while Apple's AI strategy may be understated, its substantial investments and integration of AI across its platforms indicate a serious commitment to the technology. Whether Apple can effectively compete with other tech giants in the AI market remains to be seen, but its financial strength and brand power suggest it has the potential to make a significant impact.

References:
[1] https://www.cnbc.com/video/2025/08/08/wedbushs-dan-ives-apples-ai-strategy-is-essentially-invisible.html
[2] https://finance.yahoo.com/news/why-apple-might-most-overlooked-132610388.html