Economic uncertainty and tariff fears hurt Apple last year.
However, the iPhone returned to growth and the company gained share at the expense of its rivals.
A combination of factors could help Apple join the $5 trillion club.
10 Stocks We Like More Than Apple ›
There’s no denying that Apple(NASDAQ:AAPL) has been a long-term winner for investors, gaining 78,390% since its initial public offering as of this writing. However, over the past two years, the iPhone maker has fallen on hard times. The combination of economic uncertainty and the on-again, off-again tariffs has had a negative impact, with Apple stock gaining just 40% over the past two years, behind the 46% gains of S&P 500.
However, things are starting to look up. Recent developments could help jump-start the stock, helping Apple regain its former glory.
Dan Ives of Wedbush Securities recently issued a new Street-high price target of $350, which represents potential gains for investors of 35% compared to Friday’s close, which would push Apple’s market cap to $5.17 trillion. The veteran tech analyst listed four catalysts that could propel the iPhone maker to new heights in 2026.
Image source: Getty Images.
While the artificial intelligence (AI) revolution is in full swing, Apple has been largely left out of the conversation. Apple has faced challenges in collecting the data needed to power AI because of its walled garden and emphasis on user privacy. Rumors swirled that Apple had struck a deal Alphabet to use Google Gemini as a foundation for their own large language models. Ives called Apple’s “invisible AI strategy” the elephant in the room, suggesting that a partnership between the two tech titans would be a necessary first step to ignite Apple’s rise.
Ives’ prediction came true on Monday, when Apple announced the partnership, saying, “Google technology provides the most capable foundation for Apple Foundation models, and we’re excited about the innovative new experiences it will unlock for our users.”
With more than 2.4 billion active iOS devices, including more than 1.5 million iPhones, Apple has “the largest installed base of consumers in the world,” according to Ives. This provides a captive audience and target market for Apple’s AI-based products and services.
Users have long despised the state of Siri, Apple’s voice assistant. While conversational AI was revolutionary when Siri was added to the iPhone in 2010, upgrades have lagged in recent years and rival offerings have overtaken the digital one.
Ives also predicted that Siri would get a much-needed makeover, and his prediction proved prescient. As part of its partnership with Google, Apple said Gemini will “help power Apple Intelligence features, including a more personalized Siri coming this year.”
Chatbots and voice assistants have gone viral since the launch of ChatGPT in late 2022. The long-awaited upgrade to Siri could be a catalyst for future growth.
The aforementioned economic uncertainty has led to a decline in iPhone sales in recent years. Apple’s revenue fell 3% in fiscal 2023, while growing an anemic 2% in 2024. However, things picked up in 2025 as sales rose more than 6%, record revenue fueled by strong iPhone sales and service revenue that hit a new all-time high.
Ives believes Wall Street is underestimating iPhone sales growth for 2026, which is expected to be driven by continued sales of the iPhone 17 and a successful transition to the iPhone 18. The analyst points to robust demand in China and anticipates an increase in the average selling price (ASP) for next-generation devices.
The evidence suggests that Ives’ call is right on the money. The introduction of the iPhone 17 late last year came with a $100 price increase, from $999 to $1,099. So it’s not unreasonable to suspect a similar price hike when the iPhone 18 launches in September.
Rumors have swirled in recent months that Apple CEO Tim Cook may be planning to step aside as the chief executive nears his “typical” retirement age. Additionally, this speculation has been fueled by a recent backlash within the company’s top executives and the resulting update to Apple’s succession planning.
Ives thinks this talk is a lot of idle talk, predicting that Cook will remain CEO “until at least the end of 2027.” He points to the recent hiring of renowned AI researcher Amar Subramanya as evidence that Cook is very focused on securing Apple’s AI legacy and plays down talk of his pending retirement.
To be clear, no one can know for sure what’s on Cook’s mind, although reports suggest he was looking to reduce his workload. That said, speculation about his potential retirement is just that and should be taken with a grain of salt until we hear otherwise from Cook himself.
Apple’s business trajectory suggests a $5 trillion market cap can’t be far off:
At the end of last year, estimates suggested that 315 million active iPhones had not been updated in more than four years, forming the basis of a strong upgrade cycle.
While the global smartphone market grew by just 2% in 2025, iPhone shipments grew by 10%, according to Counterpoint Research. At the same time, Apple captured a 20% market share, up from 18% in 2024.
These are a trifecta of ways Apple can grow its revenue, helping fuel its $5 trillion run. And at just 28 times next year’s expected earnings, the price is right.
Before buying Apple stock, consider the following:
The Motley Fool Stock Advisor the analyst team has just identified what they think they are 10 best stocks for investors to buy now…and Apple wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you would have $482,209!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you would have $1,133,548!*
Now, it’s worth noting Stock advisor the total average yield is 968% — a market-crushing outperformance compared to 197% for the S&P 500. Don’t miss the latest top 10 list, available with Stock advisorand join an investor community created by individual investors for individual investors.
See the 10 stocks »
*The stock advisor returns from January 14, 2026.
Danny Vena, CPA has positions in Alphabet and Apple. The Motley Fool has positions in and recommends Alphabet and Apple. The Motley Fool has a disclosure policy.
This unstoppable stock has 4 catalysts to fuel its membership of the $5 Trillion Club in 2026, according to a Wall Street analyst. was originally published by The Motley Fool
