Apple faces AI strategy criticism as Wedbush pushes for $75-per-share valuation boost

Apple’s recent Worldwide Developers Conference (WWDC) has drawn sharp criticism from Dan Ives, a senior analyst at Wedbush Securities, who labeled the event as feeling like “an episode out of Back to the Future” due to its lack of a strong AI strategy [1]. Ives highlighted the glaring absence of AI in Apple’s presentation, calling it “the elephant in the room” and a stark contrast to the aggressive AI focus seen at rival companies’ developer events [1]. While Apple showcased hardware upgrades and a strong services narrative, the vague treatment of its AI roadmap, including Siri, left many analysts and developers disappointed [1].

Ives argues that Apple is at a crossroads, with internal innovation in AI seemingly stagnant. “It’s becoming crystal clear that any innovation around AI at Apple is not coming from inside the walls of Apple Park,” he wrote [1]. Given the fast-paced evolution of AI in both enterprise and consumer sectors, Ives believes that Apple’s traditional approach to innovation is no longer sufficient [1]. He has called for a major acquisition, particularly of Perplexity, a generative AI startup, to jumpstart Apple’s AI platform and reposition Siri as a leading AI gateway [1].

Apple’s cautious approach to mergers and acquisitions has historically set it apart, but Ives argues that the company is now falling behind as competitors make large-scale AI deals. “The time has come” for a transformative acquisition, he insists, with such a move potentially boosting Apple’s valuation by as much as $75 per share [1]. Despite Wedbush’s “Outperform” rating and a 12-month price target of $270, Ives maintains that Apple’s future will be defined by its ability to adapt to the AI revolution [1].

Meanwhile, Apple’s management structure is undergoing changes. Key AI executives, including Ruoming Pang and Tom Gunter, have recently left the company for rival firms like Meta [1]. Chief Operating Officer Jeff Williams is also set to retire, prompting speculation about broader leadership changes. These developments have raised concerns about Apple’s innovation pipeline, with critics arguing that the company has not delivered any transformative products since the Steve Jobs era [1].

Analysts from LightShed Partners have also joined the chorus of voices calling for a shift in Apple’s leadership, advocating for a product-focused CEO rather than one centered on operational logistics [1]. They warn that Apple’s current trajectory, particularly its lack of compelling AI innovation and the slow evolution of Siri, could erode its competitive edge as rivals such as Microsoft, Alphabet, and OpenAI accelerate their AI strategies [1].

Despite the growing pressure, Ives remains cautiously optimistic about Tim Cook’s leadership, though he acknowledges mounting challenges. These include trade uncertainties affecting Apple’s manufacturing in China, geopolitical tensions with India as an alternative supply chain, and the company’s perceived lag in AI strategy [1]. Ives predicts that Cook will remain CEO for at least five more years but warns that the next chapter in Apple’s AI journey will be critical to defining his legacy [1].

“Patience is wearing thin among investors and importantly developers,” Ives wrote, stressing that Apple must adapt quickly to the rapidly evolving AI landscape [1]. If it fails to do so, he warns, it could result in a “historic strategic black eye” for the company [1].

Source: [1] Dan Ives slams Apple’s tech showcase as ‘an episode out of ‘Back to the Future” and turns up the heat on Tim Cook over ‘elephant in the room’ (https://fortune.com/2025/07/30/dan-ives-slams-apple-ai-strategy-back-to-the-future-elephant-room-investors/)