Broadcom stock (NASDAQ: AVGO) plummeted nearly 9% on Friday after the chipmaker warned that surging AI revenue would carry lower profit margins.

The development disappointed investors who had been betting on the company’s transition into custom chips for hyperscalers.

Friday’s sell-off came despite the company beating Wall Street estimates with fiscal Q4 revenue of $18.02 billion and guiding fiscal Q1 to $19.1 billion, both well above consensus expectations.

Broadcom’s stock plunge on Friday raised a critical question: is the AI chip boom hitting profitability headwinds even as demand accelerates?

Broadcom stock: Earnings beat, but margin warning stings

Broadcom delivered textbook earnings fundamentals.

Q4 adjusted EPS reached $1.95 on revenue of $18.02 billion, topping estimates of $1.87 and $17.45 billion. AI semiconductor revenue hit $8.3 billion in Q4, smashing prior guidance of $6.2 billion.

CEO Hock Tan highlighted a $73 billion backlog across custom accelerators, Ethernet switches, and AI infrastructure components, expected to ship over the next 18 months, visibility that most chipmakers can only dream of.​

For fiscal 2025, the company achieved record revenue of $64 billion (up 24%) with AI revenue soaring 65% to $20 billion.

Free cash flow grew 39% to $26.9 billion, and Broadcom declared a 10% dividend increase, signaling cash flow confidence.​

But here’s where the momentum broke: CFO Kirsten Spears projected Q1 gross margins would decline approximately 100 basis points sequentially due to a higher mix of AI revenue.

The analysts warned that lower-margin system sales, where Broadcom passes through component costs to customers, will represent a growing share of revenue.

The operating margins are expected to remain robust due to the leverage on fixed costs, but gross margin percentage compression is real.

What the margin math really means

Investors reacted sharply because the warning exposed an uncomfortable truth: the custom AI chips and systems carry fundamentally lower gross margins than traditional software products.

Broadcom’s custom accelerators and data center systems require higher component pass-through costs, eroding the gross margin percentage even as absolute dollar profit grows.​

The analysts also flagged another major concern: the concentration risk.

The $73 billion backlog relies on just five customers, primarily Google, Meta, and now Anthropic, and system sales have lower margins than the core networking business.

If any major customer slows orders or diverts to in-house chips, Broadcom’s growth story could hit an air pocket.

Friday’s sell-off was likely overblown. Broadcom’s operating margins remain industry-leading at 66.2% in Q4, and the company’s focus on custom silicon positions it as a structural beneficiary of hyperscalers’ push for architectural control.

The $73 billion backlog provides unusual revenue visibility.

However, the margin warning deserves serious attention. Broadcom is trading on growth assumptions that hinge on sustaining high pricing power and order flow from a concentrated customer base.

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Nvidia stock (NASDAQ: NVDA) continues to trade in red for the fourth straight session as a wave of profit-taking swept across semiconductor stocks.

The artificial intelligence stocks are witnessing a broader volatility after Oracle’s disappointing cloud revenue guidance and a stark margin warning from Broadcom that exposed uncomfortable truths about AI chip profitability.

Nvidia stock is facing mounting questions about whether $4.34 trillion in sector valuation can withstand margin pressure and slowing capex from its largest customers.

Why is Nvidia stock down today?

The immediate catalyst was Oracle’s stumble. As one of Nvidia’s largest customers, Oracle’s weak results and mounting debt load triggered fears that even hyperscalers are hitting return-on-investment walls with aggressive AI infrastructure spending.​

That was amplified hours later when Broadcom warned that gross margins would decline 100 basis points sequentially due to a rising mix of lower-margin custom AI system sales.

The message was unmistakable: as AI revenue scales, profit margins compress because custom accelerators and system builds carry inherently lower economics than specialty semiconductors.

Moreover, Nvidia’s recent weakness is not just about single-quarter earnings.

It reflects a broader realization that the semiconductor sector faces a profitable growth puzzle with soaring volumes, but margins under structural pressure.

The stock has declined 1.55% on Thursday, and sits 6.64% lower over four weeks, testing support at the 200-day moving average of $155.55.

The technical indicators flashed warning signs.

The RSI reading of 46.37 entered oversold territory, suggesting capitulation, yet momentum remains weak with MACD at -1.35.

What analysts say?

Wall Street’s response has been cautiously optimistic but increasingly cautious.

Raymond James reinstated coverage on Nvidia with a Buy rating and a $272 price target on Friday, describing the stock as a leader in “AI factories” with multi-year upside.

Morgan Stanley maintained its price target of $250, implying 37.55% upside, though the firm acknowledged near-term headwinds.

However, several analysts sounded warning notes. UBS analysts warned that crowded investor positions, combined with margin concerns, could trigger sustained selling pressure

The question now is whether this is a healthy correction in a long-term trend or the start of a re-pricing.

Oracle and Broadcom forced a discussion about how long hyperscalers will sustain capex growth if returns deteriorate.

AMD shares fell 3.05% in sympathy, suggesting the weakness is sector-wide. TSMC held up relatively better at -2.35%, implying investors are rotating toward foundry players.​

For Nvidia investors, three variables matter: whether Oracle stabilizes, whether Broadcom’s margins recover as custom AI systems gain scale, and whether Nvidia itself can defend pricing power for next-generation Blackwell chips.​

Until those questions are answered, expect volatility around technical support levels. The AI story remains intact, but the margin story now demands equal attention.

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Shares of Fermi plunged 40% on Friday after the data-center real estate investment company disclosed that a prospective anchor tenant had terminated a funding agreement tied to its marquee Texas project.

The decision, affecting a commitment of up to $150 million for construction of Project Matador, marks the sharpest setback yet for the newly listed company.

The tenant, whose identity has not been disclosed, had agreed to lease part of the Project Matador site and advance capital for its development.

Although the underlying lease discussions remain active, the financing portion of the deal has been scrapped.

Fermi confirmed in a filing that no funds were drawn before the termination.

Letter of intent expires, support evaporates

The breakdown stems from a non-binding letter of intent signed in September with what Fermi described as an investment-grade tenant.

As negotiations progressed, a follow-up agreement was signed in November outlining the $150 million advance.

When the exclusivity period expired on December 9, the tenant formally withdrew from the financing arrangement two days later.

Despite the setback, both sides are still negotiating a potential lease under the September letter of intent.

Fermi said it remains “confident” that it can meet power-delivery timelines at Project Matador, citing strong near- and long-term demand for behind-the-meter power driven by AI workloads.

Early challenge for a high-profile debutant

The development is an early test for Fermi, which has yet to generate any revenue but entered the market in October at a valuation of $14.8 billion.

Founded this year by former US Energy Secretary Rick Perry and two partners, the company pitched itself as a future cornerstone of AI-era infrastructure by developing one of the world’s largest data-centre campuses.

Strong enthusiasm around AI helped propel its debut, but the sharp reversal underscores a more cautious mood surrounding speculative AI-related names.

Investors are becoming more selective, demanding clearer paths to cash flow and closer scrutiny of unbuilt projects.

Fermi’s market cap has now fallen to $9.36 billion, according to LSEG data, and the stock is down 39% from its listing.

It last traded at $9.08, well below its IPO price of $21.

Project Matador faces mounting scrutiny

Fermi’s flagship development, Project Matador in Amarillo, Texas, includes the Donald J. Trump Generating Plant, intended to supply power to hyperscalers.

The company plans to develop 11 gigawatts of capacity by 2038—comparable to the needs of entire US states.

Its ambitions hinge on a mix of nuclear and natural-gas-based power.

Fermi aims to complete its first large nuclear reactor by 2032, an aggressive timetable given the industry’s history of delays and cost overruns.

In the near term, it expects natural-gas infrastructure to bridge the gap.

As recently as November, the company acknowledged it was behind schedule in securing its first major tenant.

The disclosure that the same tenant has now withdrawn from the funding agreement will reinforce investor concerns about timelines and execution risk.

Caution heightens as AI-energy optimism cools

While demand for power-hungry AI systems remains robust, investors have grown more cautious about companies promising to build vast energy and data-center infrastructure before achieving any commercial foothold.

Seven brokerages still rate the stock a “buy” or higher with a median price target of $33, but the latest setback adds pressure on Fermi to secure firm agreements that validate its long-term strategy.

With negotiations ongoing, the next several months will be crucial in determining whether the company can regain momentum—or whether early enthusiasm for its bold infrastructure vision will continue to wane.

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Silver price refreshed its record high on Friday, proving that the rally was not just Fed-driven. With the persistent economic uncertainties and geopolitical risks, investors are seeking exposure in the white metal, which they expect to rally further. This sentiment has bolstered silver ETF inflows, with November marking its highest level since July. Besides, its industrial demand has surged at a time when the physical market is experiencing supply tightness.   

Silver price analysis beyond the Fed decision

The SLV ETF stock has been on a parabolic surge in recent weeks; refreshing its all-time high several times along the way. Notably, one of the key drivers of this spike has been expectations of an interest rate cut by the Federal Reserve. As such, it appeared likely that a hawkish guidance would ease the rallying while strengthening the US dollar. 

True to the financial markets’ expectations, the Fed cut interest rates by a quarter percentage point, bringing the lending rates to between 3.5% and 3.75%. This third reduction of the year came amid differing opinions among the policymakers with Jerome Powell terming the vote as “a close call”. 

While the central bank does not see a rate hike as being the base case for the coming months, its outlook is for one cut in 2026. According to Powell, it has done enough to help normalize the US labor market while allowing inflation to resume its decline towards the 2% target. 

Ordinarily, a hawkish tone from the Fed would weigh on silver prices. However, its movements after the FOMC statement have indicated that the rally is not merely Fed-driven. Instead, heightened demand and supply tightness in the physical market remain the primary drivers of the uptrend. 

Compared to gold’s price surge of about 60% ytd, silver price has more than doubled its value since the start of 2025. While gold has recorded stellar performance this year, investors have embraced the white metal as a preferred alternative for jewelry and investment. Its industrial demand has also surged from products like medical technology, solar panels, and EVs.

Besides, steady ETF inflows have bolstered the rally as investors expect economic uncertainties and geopolitical risk to sustain the precious metal’s safe-haven appeal. In November, silver ETF inflows hit the highest level since July at 15.7 million ounces. With this solid demand outlook, SLV silver ETF will likely extend its uptrend; at least in the short term.     

SLV ETF stock technical analysis

On Wednesday, the iShares Silver Trust ETF extended gains from the previous session to hit a fresh record high of $566.07. Since retesting its 2012 levels about two weeks ago, the top silver ETF has recorded six fresh all-time highs as physical demand surges and supply tightens. 

A look at its daily chart indicates that the rallying has pushed the asset to the overbought territory at an RSI of 75. While a corrective pullback is expected in the near-term, the bulls have the chance to push SLV silver price higher as more buyers seek exposure. 

At its current level, further rallying will likely see it reach $57 and beyond as the bulls eye the crucial zone of $60. On the flip side, the expected healthy decline may have the silver ETF gain support at the previous resistance level of $53.29. A further pullback will likely activate the lower support along the short-term 25-day EMA at $49.47. 

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Oracle stock (NYSE: ORCL) plunged 5% on Friday after Bloomberg reported that the cloud giant has pushed back the completion of several data centers being built for OpenAI from 2027 to 2028.

The delay ignited fresh investor anxiety about Oracle’s $300 billion bet on AI infrastructure and its ability to convert aggressive capex spending into near-term revenue.

It also dealt another blow to the stock, which had already stumbled after disappointing earnings the previous day.

Though Oracle swiftly denied the report, insisting “all milestones remain on schedule,” the damage to sentiment had already hardened, with sector contagion spreading to chip suppliers including Nvidia, AMD, Micron, and Arm.​

The Bloomberg report attributed the year-long delay to bottlenecks in labor and power availability, as well as shortages in construction materials, constraints affecting the broader data-center buildout industry.

However, these challenges carry outsized significance for Oracle, which is betting its AI future on the rapid deployment of new facilities.

The Abilene, Texas facility, Oracle’s flagship OpenAI project, has reportedly received over 10,000 Nvidia chips and remains on track, but unnamed sources suggested other locations were being pushed back.​

Oracle’s response came swiftly. A company representative stated:

We have no delays at sites required to meet our contractual obligations, and all milestones remain on schedule.

The firm emphasized that “site selection and delivery timelines were established in close collaboration with OpenAI,” and Chief Executive Officer Safra Catz reiterated during the earnings call that targets were “ambitious yet attainable”.​

Why market believe the bad news over the denial

The delay report hit at precisely the wrong moment.

Oracle had already spooked investors on Wednesday with Q2 earnings that missed revenue estimates and shocked the market by raising fiscal 2026 capex guidance to $50 billion from the prior $35 billion forecast, a $15 billion increase.

That sudden spending hike, combined with mounting concerns about Oracle’s debt load and return-on-investment timeline, primed the market for negative headlines.​

The timing also mattered.

Oracle’s credit default swaps had spiked to their highest levels since March 2009, signaling anxiety among bond investors about the company’s ability to service debt while funding a multi-hundred-billion-dollar build-out.

When Bloomberg’s reporting suggested even flagship data centers faced slippage, investors interpreted it as proof that execution risk was real.​

Sector-wide ripples and what comes next

The sell-off rippled across semiconductor stocks. Nvidia fell 3 to 6%, AMD dropped 3%, and Broadcom slid further after its own margin warning.

The contagion underscored how tightly linked the AI boom is to a handful of large customers, and how fragile investor confidence has become about hyperscaler capex cycles.​

For Oracle, the road forward hinges on proof of execution.

Watch for any formal SEC filings clarifying capex guidance, quarterly updates on data-center deployment timelines, and OpenAI commentary confirming or denying the delays.

Until then, expect continued volatility around Oracle stock and elevated skepticism toward any AI infrastructure player betting big on near-term revenue conversion from massive capex outlays.

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Rivian Automotive Inc (NASDAQ: RIVN) rallied more than 15% today after the electric vehicles (EV) specialist showcased bold plans to accelerate its push into autonomous driving.

At its inaugural “Autonomy & AI Day”, the company unveiled a proprietary autonomy processor, a full artificial intelligence (AI) driving stack, and a self-driving subscription service slated for 2026.

Including today’s surge, Rivian stock is up a whopping 80% versus its year-to-date low in March.

What we know about Rivian’s custom autonomy chip

Central to Rivian’s announcement was the debut of its proprietary Rivian Autonomy Processor, or “RAP1”.

The chip is designed specifically for vision-heavy artificial intelligence workloads, giving Rivian control over a critical piece of the self-driving stack.

RAP1 boasts multi-chip module packaging, high memory bandwidth, and the ability to process billions of pixels per second.

This level of performance is intended to support real-time decision-making for autonomous vehicles, a capability that CEO RJ Scaringe described as transformative.

“AI is enabling us to create technology and customer experiences at an unprecedented rate,” he said.

By developing its own chip rather than relying on third-party suppliers, RIVN is signaling that it wants to compete head-to-head with Tesla Inc. and other leaders in autonomy.

The move also gives Rivian flexibility to tailor its hardware to its vehicles, potentially improving efficiency and safety.

What we know about Rivian’s autonomy subscription service

Rivian also announced plans to launch a subscription-based self-driving package – Autonomy+ in early 2026.

The service will be offered on second-generation vehicles at $2,500 upfront or $49.99 per month.

Unlike Tesla’s camera-only approach, Rivian’s system will combine lidar, radar, and its custom autonomy computer to deliver Level 4 capabilities – where drivers can safely disengage in normal conditions.

A forthcoming software update will introduce “Universal Hands-Free,” enabling hands-free driving across millions of miles of mapped roads in North America.

This subscription model could become a recurring revenue stream, allowing Rivian to monetize autonomy beyond the initial vehicle sale.

For consumers, it offers flexibility: pay once for lifetime access or subscribe monthly. For Rivian stock, it represents a scalable way to capture value from its technology investments.

Here’s what it means for Rivian stock

The combination of proprietary hardware, advanced sensors, and a subscription model paints a compelling growth story.

Investors see Rivian’s autonomy push as a way to differentiate itself in a crowded EV market while creating new revenue channels.

The RAP1 chip demonstrates technical ambition, while Autonomy+ signals a clear monetization strategy. Together, they suggest Rivian is not just chasing Tesla but carving its own path.

The strong RIVN stock reaction reflects confidence that the company’s roadmap could accelerate adoption and improve margins over time.

With hands-free driving features set to roll out soon and full autonomy on the horizon, Rivian’s announcement has shifted sentiment decisively.

For shareholders, the event marked a turning point – proof that Rivian is ready to compete in both electric vehicle and autonomous mobility.

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Like a thrilling corporate drama, the battle for Warner Bros Discovery acquired a sensational new subplot last week when, not willing to let go, Paramount Skydance made a comeback with a $108.4 billion all-cash hostile bid for the studio powerhouse, just days after WBD had sealed a deal with Netflix.

Paramount went straight to investors on Monday with a $30-a-share tender for all of WBD.

Netflix, whose offer arrived first, had valued the company’s studio and streaming assets at $27.75 a share through a mix of cash and stock.

Netflix has proposed a cash-and-stock acquisition of WBD’s studios and streaming businesses, excluding its cable assets, while Paramount wants the entire company—from Warner Bros studios and streaming to CNN and Discovery.

The offers arrive at a moment when media consolidation is reshaping the competitive landscape, and the outcome is expected to influence everything from streaming prices and theatrical releases to employment across Hollywood.

While both companies argue their bids are superior, the implications vary significantly depending on the chosen buyer.

Investors, regulators, Hollywood unions and consumer advocates are weighing not only deal value but also the long-term impact on the industry.

How the offers differ in structure and strategic intent

Netflix’s proposal, valued at $27.75 a share, focuses on acquiring only the crown jewels of Warner Bros: its iconic studios, HBO and HBO Max, and the associated streaming businesses.

The cable channels—including CNN, Cartoon Network and Discovery—would be spun into a separate company. Investors would receive $23.25 in cash and $4.50 in Netflix stock.

Paramount’s bid, by contrast, is simpler but more sweeping.

It offers WBD shareholders $30 in cash per share for the entire company.

David Ellison, Paramount’s chief executive, has argued that acquiring all of WBD would dramatically scale Paramount’s streaming ambitions and give regulators a cleaner, more straightforward transaction to assess.

Analysts note that the “total value” of both offers is close once adjustments are made for what Netflix is choosing to leave out.

Yet Paramount’s all-cash structure is attractive to investors seeking certainty amid market volatility.

Many now expect Paramount to increase its offer, after internal advisers signalled that the $30 bid was not “best and final.”

Impact on jobs: consolidation likely to bring steep cuts

Both potential owners claim their deal would be more job-preserving than the alternative, but consolidation on this scale almost always results in redundancies.

The existing merger that created WBD already led to several thousand layoffs, and another round—whether under Netflix or Paramount—appears inevitable.

Paramount executives have said they expect at least $6 billion in savings over three years.

Analysts estimate this would translate into as many as 6,000 job cuts across overlapping film, TV and corporate functions.

Paramount also owns its own studio lot, cable channels and news operations, creating additional areas of duplication.

Netflix’s integration, analysts say, would be less severe in the near term.

Without a legacy studio complex of its own, Netflix would rely heavily on WBD’s existing infrastructure and production teams, reducing immediate pressure for cuts.

However, Netflix has stated that it seeks $2–3 billion in savings, primarily through procurement and distribution efficiencies.

Over time, consolidation of production units and back-office systems could shrink headcount.

Hollywood unions have already called for regulators to block Netflix’s offer on the grounds that it could centralise too much power in a company viewed as hostile to theatrical releases.

However, they acknowledge that a Paramount takeover would also lead to job losses—just potentially in different places.

What the Netflix offer implies for viewers

A Netflix takeover would unite the world’s largest streaming service with HBO’s prestige offerings and Warner Bros’ deep film library.

For viewers, this raises three major questions: how streaming packages may change, whether theatrical windows will shrink, and how pricing will evolve.

Netflix has told its subscribers that nothing will change immediately and that HBO Max will continue as a separate service for the foreseeable future.

But industry analysts believe bundling is inevitable. Integrating HBO titles into Netflix’s global distribution engine would give Netflix an unprecedented programming footprint.

Co-CEO Greg Peters has suggested the companies could eventually introduce mixed subscription plans, bringing HBO originals under Netflix’s pricing tiers.

The larger concern for cinemas is whether Netflix would eventually shorten theatrical windows for major Warner Bros releases.

The company has historically favoured quick streaming debuts and limited theatrical runs.

While it has committed to maintaining Warner’s established theatrical contracts through 2029, long-term incentives may shift.

For consumers, consolidation typically leads to higher prices.

Experts expect subscription fees for any Netflix-HBO Max bundle to increase within 12–18 months of a deal closing.

What the Paramount offer implies for viewers

Paramount has argued that combining its studio with Warner Bros would expand theatrical outputs, not shrink them.

Paramount sits at an “existential crossroads” right now because buying Warner Discovery would be crucial to helping the company scale its direct-to-consumer streaming business, MoffettNathanson analyst Robert Fishman wrote Monday in a research note.

Ellison has pledged to release at least 30 films a year—significantly more than either studio currently produces independently.

Paramount owns CBS News and dozens of cable channels.

A combined entity could reshape the US news and entertainment landscape, creating potential synergies but also raising fears of reduced diversity in content.

Bundling CBS, Paramount+ and HBO Max into a single subscription could create one of the industry’s largest entertainment packages, almost certainly at a higher price point.

The merger would also give Paramount a broad content library similar in scale to Disney’s.

Analysts believe the combined company would eventually consolidate its streaming offerings under a single umbrella, likely retiring the Paramount+ brand and re-centring the business around a unified Warner-Paramount service.

How regulators may view both offers

Both deals face intense regulatory scrutiny, though analysts differ on which one stands a better chance.

Netflix has 302 million paying subscribers, compared with 128 million at WBD and 79 million at Paramount.

A tie-up between Netflix and WBD would significantly strengthen its lead as the world’s largest streaming platform, typically a major concern for regulators.

But if authorities treat YouTube and TikTok as part of the competitive landscape, Netflix’s market share appears far less dominant.

Paramount believes it has an advantage because it is much smaller.

But the political dimension complicates the picture.

Trump has long been critical of CNN, frequently branding it “Fake News,” and some analysts suggest he may prefer to see the network folded into Paramount’s portfolio.

Paramount already owns CBS News, which recently appointed Bari Weiss — a vocal critic of progressive cultural trends — as editor-in-chief.

From a regulatory standpoint, a Paramount bid would draw scrutiny over the merger of two major Hollywood studios.

But beyond the economics, political considerations loom large.

Trump said on Sunday that he “would be involved” in determining who ultimately acquires WBD, indicating he could influence the process through the Justice Department’s antitrust authority.

On the surface, Paramount may appear to have an edge: David Ellison is the son of Oracle founder Larry Ellison, a close Trump ally, and Jared Kushner, the president’s son-in-law, is among the financial backers of the Paramount offer.

Polymarket odds suggest a near-tie, with a 42% chance each that Netflix or Paramount will succeed before June 2027.

Ball in WBD’s investors’ court as they expect Paramount to sweeten the bid

WBD shares bounced back 9% on Monday after Paramount unveiled its hostile bid, reversing the 9.8% drop recorded on Friday when Netflix announced its agreement with the studio.

Paramount chief executive David Ellison spent Tuesday meeting Warner investors in New York, urging them to press the company’s management and board to favour his bid over Netflix’s, according to people familiar with the discussions.

Several attendees left the meetings believing a higher bid from Paramount was likely, The Wall Street Journal reported.

Warner’s stock climbed roughly 4% across Tuesday and Wednesday as the meetings unfolded, trading close to $30 a share — just shy of both offer values.

That narrow gap suggests investors believe at least one bidder will return with an improved proposal, hedge-fund managers said.

If investors doubted a deal would close, the stock would trade at a steeper discount, given the lengthy timeline and regulatory risk involved.

Instead, the pricing indicates expectations for a swift outcome.

Shareholders broadly anticipate that Paramount will raise its offer.

A regulatory filing on Monday offered the clearest hint yet that Paramount is prepared to pay more.

In it, Blair Effron of Centerview, advising Paramount, texted Evercore’s Roger Altman — who is advising WBD — to underline that Paramount’s previous proposal “did not include ‘best and final’.”

Effron reached out after WBD chief David Zaslav did not respond to Ellison’s December 4 message expressing willingness to go further to secure a deal.

If Paramount ultimately raises its offer, WBD could argue that agreeing to Netflix’s deal helped draw a richer bid from a rival, potentially supporting its decision-making, analysts said.

Warner Bros. Discovery shares have surged almost 40% — from just over $21 before the offers emerged to just under $29.

Paramount’s $30-a-share bid for the entire company, including the cable networks, has pushed the stock above the value implied by Netflix’s proposal.

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Apple Inc. (NASDAQ: AAPL) faces frequent criticism for lagging in artificial intelligence innovation compared to aggressive moves by Microsoft, Google, and Meta.

However, 2026 will finally mark the giant’s entry into an “AI revolution”, argues Wedbush’s senior analyst, Dan Ives.

Ives maintained his “outperform” rating on AAPL shares this week, raising his price target to $350, implying a 27% upside from current levels.

According to him, Apple’s long-awaited artificial intelligence strategy, coupled with strong iPhone 17 sales, could reshape investor sentiment and unlock billions in new value.

What Apple’s AI revolution may look like

In his latest research note, Dan Ives said Apple’s partnership with Google Gemini – expected to be formally announced early next year – will be a “game-changer” that propels the company into the AI spotlight.

With an installed base of 2.4 billion iOS devices and 1.5 billion iPhones, Apple Inc. has the largest consumer ecosystem in the world.

Embedding Gemini into that ecosystem could instantly give it a powerful AI presence, from Siri upgrades to productivity tools and personalized services.

“2026 is going to finally be the year that AAPL enters the AI Revolution,” Ives wrote, adding that AI monetization could add up to $100 per share to the giant’s story over the coming years.

For AAPL shares, this partnership wouldn’t just close the perception gap with rivals but also create recurring revenue streams tied directly to AI usage across its devices.

What else could Apple do in AI next year?

Beyond the Gemini partnership, speculation is growing about other major AI initiatives Apple could unveil in 2026.

Industry chatter suggests Apple could roll out a revamped Siri powered by generative AI, making it more conversational and capable of handling complex tasks.

Rumours also point to AI‑driven features in iOS 20 – such as predictive app suggestions, smarter photo editing, and real‑time language translation.

Some analysts whisper about the multinational experimenting with on‑device AI chips as well to reduce reliance on cloud computing, a move that would emphasize privacy and efficiency.

While none of these have been confirmed, the whispers highlight growing expectations that AAPL will finally shed its “invisible AI strategy” label.

If even half of these speculations materialize, Apple stock could quickly transform from laggard to leader in consumer AI.

Tim Cook to remain with Apple through 2027

Dan Ives also emphasized that Apple’s leadership stability will be critical during this transition.

He expects Tim Cook to remain CEO through at least the end of 2027, ensuring continuity as Apple navigates its AI strategy.

Cook’s steady hand has guided the Nasdaq-listed firm through multiple technology shifts – from the iPhone’s dominance to the rise of wearables and services.

Now, his role will be to oversee the integration of artificial intelligence into the AAPL ecosystem while maintaining the company’s hallmark focus on user privacy and seamless design.

For investors, Cook’s extended tenure signals that Apple won’t rush into AI recklessly – but will execute with discipline.

As Ives put it, Apple is finally ready to accelerate its AI efforts, and Cook’s leadership will be central to making that revolution a reality.

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