Morgan Stanley raises Apple stock target to $360 after WWDC AI update

Apple (AAPL) has spent the bulk of the past couple of years trying to convince investors it has not fallen behind in the relentless AI race.

Morgan Stanley buys that story.

According to TheFly, the firm reset its price target on Apple stock after WWDC 2026, saying the event gave investors a sharper view of how Apple plans to rebuild Siri, improve Apple Intelligence, and eventually turn those upgrades into real money.

Apple's AI story is remarkably different from Nvidia's or OpenAI's.

The tech giant needs to make AI useful enough that people buy new iPhones, pay for more iCloud storage, and stay deeper inside the Apple ecosystem.

WWDC did not solve every problem. Apple still has limited rollout plans in key markets, and Morgan Stanley wanted to see more advanced agentic features.

However, there was enough progress to call the event a step in the right direction.

Apple's AI event had a few big takeaways

• WWDC 2026 was seen by Morgan Stanley as a clear step forward for Apple.
• The new Siri looked much stronger, combining personal context, screen awareness, app controls, and conversational responses.
• Morgan Stanley flagged Image Playground and photo editing as major improvements from the first version of Apple Intelligence.
• The event also gave developers more ways to bring AI and command-control features into iOS apps.
• There are still gaps. Apple Intelligence and Siri 2.0 are not available in China or the EU, and Morgan Stanley wanted to see more advanced agentic workflows. Still, the firm said Apple now has a clearer path to AI monetization.

Morgan Stanley sees bigger upside for Apple stock

Morgan Stanley is all-in on Apple's bull case post WWDC.

The firm bumped its Apple price target to $360 from $330 after WWDC 2026, arguing that Apple finally gave Wall Street a clearer look at its AI monetization strategy.

More Wall Street:

• JPMorgan resets S&P 500 price target for the rest of 2026
• Vanguard challenges the S&P 500 as a one-stop strategy
• Goldman Sachs resets Broadcom stock forecast

At a current stock price of about $291, that new target implies roughly 24% upside.

Morgan Stanley says Apple's AI opportunity starts with hardware.

More than 850 million iPhones still cannot run basic Apple Intelligence features, while more than 1.3 billion cannot run advanced Siri features. That creates a powerful tailwind for users to upgrade over the next few cycles.

Services could also benefit.

The firm pointed to Image Playground, photo editing tools, and usage limits as possible drivers of higher iCloud adoption, new storage tiers, or stronger Services monetization.

Morgan Stanley's new target is based on about 35 times fiscal 2027 EPS of $10.30, reflecting more confidence that Apple's AI roadmap can support stronger iPhone growth, resilient Services revenue, and a richer valuation multiple.

Justin Sullivan / Getty Images

Apple stock struggles to justify its premium valuation

In terms of stock performance, Apple stock has lagged the broader market across most recent periods, falling 5.15% over the past week and 0.94% over the past month, according to Seeking Alpha.

On the flip side, the stock is up 4.56% over the past six months and 6.87% year to date, but both figures trail the S&P 500's gains of 7.89% and 7.90%, respectively.

Related: Bank of America sends clear message on Apple stock after key event

However, the Cupertino giants' recent sluggishness hasn't taken away from their premium valuation.

AAPL stock is trading at a forward non-GAAP earnings multiple of 34.47 times, which is 36% above the sector median, according to Seeking Alpha.

Perhaps the bigger concern is growth-adjusted valuation, with Apple's forward non-GAAP PEG ratio of 3.07 more than double the sector median.

Put simply, investors are paying a steep price for growth that hasn't been reflected in the stock's recent performance.

Additionally, the moving averages suggest near-term pressure.

Apple's last price sits 2.59% below its 10-day simple moving average of 309.56, underscoring the recent weakness. Still, the stock remains above its 50-day, 100-day, and 200-day moving averages, showing that the longer-term trend hasn't broken.

Wall Street price targets for Apple stock

• Morgan Stanley bumped its Apple price target to $360 from $330.
• TD Cowen raised its Apple price target to $350 from $335.
• Maxim Group raised its Apple price target to $350 from $310.
• JPMorgan reiterated its Apple price target at $325.
• Jefferies maintained its Apple price target at $299.88.
  
  Source: Investing.com

Apple still has risks to watch

Morgan Stanley is upbeat on Apple stock after WWDC 2026, but the firm still has plenty of concerns that may derail the stock's next leg higher.

The biggest concern is the iPhone.

If the iPhone 17 cycle disappoints, especially as consumers push back against higher effective prices, Apple's upgrade story will lose steam.

Weaker consumer spending is another major risk, with pressure on discretionary income potentially slowing down growth across Apple's broader product lineup. That will potentially lead to low single-digit product top-line growth and slower Services growth.

Costs are another issue.

Higher memory input costs might weigh on margins, especially as Apple leans harder into AI features that require more powerful hardware.

For color, Apple's trailing 12-month gross profit margin is 48%, roughly 8% above its 5-year average, according to Seeking Alpha.

Also, the bank points to limited progress on AI features, geopolitical tensions, and increased regulatory roadblocks, particularly around the App Store, as risks to the stock.

Related: Bank of America delivers uncomfortable message for stock market investors

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This story was originally published June 10, 2026 at 2:07 PM.