Bank of America raised its price target on Apple (AAPL) to $380 from $330 on Tuesday, a bullish call that refocused Wall Street on the company's artificial-intelligence strategy and reignited speculation about a potential stock split. The stock traded at $308.82 before the opening bell, up roughly 1.2% from the previous close, as investors weighed the implications of the upgrade.
AI Monetization Takes Center Stage
The bank's new target is built on the potential for 'agentic AI' — software that can execute multi-step tasks on a user's behalf rather than simply answering prompts. Bank of America estimates that a Siri-linked rollout could generate between $15 billion and $30 billion in additional revenue by fiscal 2030, with the figure rising to $40 billion to $65 billion under a broader adoption scenario, according to Seeking Alpha. The upgrade comes just two weeks before Apple's Worldwide Developers Conference (WWDC), where investors expect detailed updates on Siri and other AI features after a relatively slow start compared to rivals.
Split Speculation Resurfaces
The share price's proximity to $309 has revived chatter about a possible stock split, though Apple has not announced one. EBC Financial Group noted that a move toward $350 would strengthen the case for a 3-for-1 split, while a climb toward $400 would invite comparisons with Apple's 4-for-1 split in 2020. A split reduces the quoted share price and increases the share count proportionally, leaving ownership stakes unchanged. Apple's latest quarterly filing showed about 14.69 billion shares outstanding and 50.4 billion shares authorized. A 3-for-1 split would fit within that authorization, but a 4-for-1 split would require either a reduction in the share count through buybacks or shareholder approval for more authorized shares.
Solid Financial Backdrop
The company's recent financial performance provides a sturdy foundation for the bullish narrative. Apple reported fiscal second-quarter revenue of $111.2 billion, up 17% year over year, and diluted earnings per share of $2.01, a 22% increase. Chief Executive Tim Cook called it the company's 'best March quarter ever,' citing 'extraordinary demand' for the iPhone 17 lineup. Finance Chief Kevan Parekh added that operating cash flow exceeded $28 billion.
Competitive AI Strategy
Apple's AI push also carries a competitive edge. Reuters has reported that Apple plans to use Google's Gemini models for a revamped Siri and is preparing to allow users to choose third-party AI models in future operating systems. That strategy puts Apple more directly in competition with Alphabet, Anthropic, and Microsoft-backed OpenAI.
China Market Data Offers Another Cue
China remains a swing factor for the stock. Shipments of foreign-branded mobile phones in China, which include the iPhone, rose 1.8% in April to 3.59 million units, according to Reuters, while total phone shipments in the country increased 2.8% to 25.73 million units.
Risks and Near-Term Catalysts
Despite the optimism, the AI revenue thesis must still be proven. Apple has warned in regulatory filings that AI features carry legal, privacy, cybersecurity, and product risks, and that tariffs or other trade measures could pressure supply chains and margins. A strong Siri demonstration at WWDC would bolster the stock's narrative, but a late or underwhelming rollout would make the $380 target harder to defend. For now, investors have two near-term events to watch: Apple's developer conference and any corporate filing that might hint at a stock split. Until the board makes a decision, the split trade remains speculation.
