Wedbush Securities‘ Dan Ives has warned that Apple Inc.’s (NASDAQ:AAPL) failure to innovate in artificial intelligence could tarnish CEO Tim Cook’s legacy, as other tech giants race ahead in the AI revolution.
Dan Ives Highlights Apple’s Urgent AI Crisis
On Friday, Ives, global head of technology research at Wedbush Securities, raised a critical alarm on CNBC’s Fast Money regarding Apple’s lack of progress in the AI sector.
Describing the current situation as a “BlackBerry moment,” Ives warned that Apple’s failure to keep up with the rapid advances in AI could severely harm the company’s prospects.
“Everything that we see in big tech across the board it’s an F1 race passing them by. And Apple is essentially in Cook on a park bench drinking lemonade,” Ives stated.
He then spoke about Apple CEO’s leadership.
“I think Cook should be CEO. We believe he’s been a Hall of Fame CEO and should continue to be, but it will tarnish his legacy and the Apple future if they miss out on the fourth Industrial Revolution,” the analyst said.
Apple’s Missed Opportunities In AI
He pointed out that Apple’s current AI strategy lacks visibility and innovation, leaving the company trailing behind competitors like Microsoft Corporation (NASDAQ:MSFT), Alphabet Inc.’s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google and Nvidia Corporation (NASDAQ:NVDA), which are aggressively advancing in AI.
The biggest issue is that Apple’s AI strategy is essentially invisible right now, Ives said, adding that without a significant shift, Apple risks becoming irrelevant in the AI race, especially with other tech giants pulling ahead.
Ives’ Three-Part Plan To Save Apple
Ives earlier highlighted that despite Apple’s massive 2.4 billion iOS devices in play, the company is not capitalizing on its lead in consumer technology. To turn things around, Ives proposed a three-step plan for Apple to regain its footing in the AI space:
Acquire Perplexity: A $30 billion AI search engine, Perplexity, could help Apple improve Siri and other AI functions.
Hire AI Talent: Apple needs to bring in real AI experts to refresh its management team.
Partner With Google’s Gemini: Instead of relying on OpenAI, Ives suggested that Apple should integrate Google’s AI system, Gemini, to stay competitive.
Apple’s Financials And Future Outlook
Despite the concerns, Apple in July reported strong third-quarter earnings, with $94 billion in revenue and $44.58 billion in iPhone sales. However, Ives stressed that without a clear AI strategy, Apple’s stock may face limitations in growth.
The company has until the end of 2026 to redefine its AI strategy, according to other analysts like TD Cowen, who also warned about the risks of failing to act quickly.
Price Action: Apple Inc. shares rose 4.24% on Friday, closing at $229.35, according to Benzinga Pro.
Benzinga’s Edge Stock Rankings show that AAPL maintains an upward trend in the short and medium term, while trending downward over the long term. Additional performance details are available here.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo Courtesy: Ringo Chiu on Shutterstock.com
