Apple’s artificial intelligence story isn’t fading after its Worldwide Developers Conference.
If anything, Wall Street is still going deeper into what Apple showed, what it promised, and how these new AI tools can change the company’s growth story and impact its stock price.
Analysts are closely watching Apple Intelligence, new Apple Foundation Models, and Siri, one of the company’s most important consumer-facing products.
The iPhone maker’s efforts have become more urgent now as Google, Microsoft, OpenAI, Meta, and Samsung move quickly to put AI features into phones, computers, apps, and everyday digital tools.
Moreover, the company does not just need to show that it can build AI features, but also convince investors that AI can make the iPhone, iPad, Mac, Apple Watch, and Vision Pro feel more necessary to consumers who may already be holding on to devices longer.
That is why Siri matters.
Apple was early to voice assistants, but Siri has long been criticized for falling behind newer AI tools that can answer complex questions, summarize information, understand images, and complete more advanced tasks.
Now, Bank of America says Apple may have taken a bigger step than investors are giving it credit for.
Bank of America keeps bullish Apple stock view
In a June 22 note shared with TheStreet, Bank of America analyst Wamsi Mohan maintained his buy rating on Apple stock and kept his $380 price target.
That target implies 27.5% upside from the $298.01 Apple share price used in the note.
The call comes after TheStreet previously covered how Goldman Sachs reset its Apple stock forecast after WWDC, as Wall Street weighed whether Apple’s new Siri AI and Apple Intelligence updates could support a stronger upgrade cycle.
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Bank of America is now making a similar argument, but with a sharper focus on Siri’s underlying architecture.
Mohan said Apple’s WWDC 2026 announcements represented a “material positive reset” of the company’s AI strategy.
The key change is that Siri AI is being positioned as a context-aware, multimodal, cross-app assistant built into the Apple ecosystem.
That could make Siri more than a voice tool for timers, weather, messages, and basic device settings.
It could turn Siri into a more useful control layer across Apple devices.
Moment Capsule Photography / Getty Images
Apple’s Siri AI could change the upgrade story
Apple introduced a new version of Siri at WWDC, powered by Apple Intelligence and featuring personal context understanding, on-screen awareness, broader knowledge, and the ability to take action in apps.
For consumers, the easiest way to understand the change is this: Siri is meant to know more about what a user is doing and help complete more steps without forcing that person to jump between apps.
BofA said Siri AI can reason over information from messages, emails, photos, files, calendar entries, and other user data sources.
That means a user could ask Siri to find a hotel reservation in an email and use the address in Maps, or pull a detail from a past message and add it to a reminder.
Siri AI is also expected to become more aware of what is on screen. That could allow it to answer questions about what a user is viewing or take actions based on the current context.
Those details matter because Apple’s AI opportunity is closely tied to hardware upgrades.
If Siri AI becomes useful enough, it could give customers a stronger reason to buy a newer iPhone, iPad, or Mac.
That would support Apple’s device sales while also deepening engagement across services such as iCloud, Apple Music, Apple TV+, AppleCare, payments, and the App Store.
Apple answered Wall Street’s biggest AI concern at WWDC by showing how Siri AI could become more deeply tied to Apple’s devices and software ecosystem, TheStreet previously noted.
Bank of America’s latest note pushes that view further.
Mohan said Apple’s new Siri AI architecture is underappreciated and could help drive hardware upgrade cycles and deeper engagement with services.
BofA says Apple faces a hidden AI cost question
Bank of America’s bullish view does not mean Apple’s AI shift is simple.
The firm said Apple’s new AI system uses a hybrid setup that spans on-device processing, Private Cloud Compute, and Google Cloud with Nvidia GPUs for the most demanding workloads.
That means easier Siri requests can stay on the device, which can help with speed, privacy, and cost.
More complex requests can move to Apple’s cloud infrastructure.
The most demanding tasks, including advanced reasoning or agent-like workflows, can use Google Cloud and Nvidia GPUs through Apple’s expanded Private Cloud Compute model.
This is important because AI can become expensive when more tasks move to the cloud.
BofA said the key question for Apple is how often Siri AI requests escalate from the device to the cloud infrastructure.
In its illustrative 2030 framework, the firm assumes that 50% of Siri AI requests are handled on-device and 50% through Private Cloud Compute.
But only 5% of requests are routed to Apple’s most demanding Cloud Pro tier.
Even so, BofA said Cloud Pro could represent 33% of workload units and 67% of weighted cloud cost after adjusting for larger context, reasoning, image processing, and model intensity.
Put more simply, the most advanced Siri tasks may be a small part of total usage but a much larger part of the cost.
That is why Apple’s on-device AI strategy matters. The more Apple can handle directly on an iPhone, iPad, or Mac, the less it may need to spend on expensive cloud processing.
TheStreet also recently covered how Bank of America predicted a major pricing shift for Apple, after higher memory costs raised questions about whether Apple would need to charge more for future devices.
The latest BofA note shows the other side of that same AI story.
AI may help Apple sell more devices, but it also brings new infrastructure costs that investors will keep watching.
Bank of America flags risks to Apple stock outlook
Bank of America remains bullish on Apple, but it still sees risks.
The biggest risk in BofA’s Siri AI view may be the cost of success.
If Siri AI becomes more useful, consumers may use it more often and ask it to complete more complex tasks. That could push more device requests to the cloud infrastructure, especially to Apple’s Cloud Pro tier.
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BofA estimates that Cloud Pro could account for only 5% of request volume but 67% of weighted cloud costs, underscoring why a small shift toward advanced AI tasks could have an outsized impact on Apple’s infrastructure spending and margins.
In simple terms, the better Siri gets at doing complicated tasks, the more expensive it could become for Apple to run
The firm said downside risks also include:
- Weaker iPhone cycle tied to consumer spending
- Weaker near-term services trajectory
- Slower App Store or licensing growth
- Execution risk around agentic Siri, iPads, and Macs returning closer to pre-Covid demand levels
- A stronger dollar
- Antitrust lawsuits
Those risks are important because Apple’s AI strategy now cuts both ways.
If Siri AI becomes a useful everyday assistant, Apple could make its devices harder to replace and give customers a stronger reason to upgrade.
If the rollout disappoints, Apple may face the same problem investors have worried about for years: a massive installed base, but not enough urgency for customers to buy the next device.
For now, Bank of America is staying bullish.
While the company’s stock has declined by more than 3% this month, it is still up 48% over the year.
And BofA views Apple’s Siri AI reset as giving the company a more credible path in artificial intelligence, even as investors continue to watch whether the technology can drive upgrades without putting too much pressure on margins.
More on Apple & its stock:
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- Apple’s stock split history: Everything you need to know
- How many employees does Apple have? A deeper look at the tech giant’s workforce
- Where is Apple’s headquarters? A spaceship-like office with thousands of trees
- Apple salaries: From retail to engineering to CEO