Could Agentic AI Be Apple's Next Big Tailwind?

Artificial intelligence (AI) helped many tech leaders improve their businesses. Nvidia saw surging demand for its GPUs (Graphics Processing Units), Meta Platforms used the technology to increase engagement on its apps through algorithms, and the hyperscalers -- Amazon, , and Microsoft -- launched a variety of AI services they offer through the cloud. Meanwhile, many thought that (NASDAQ: AAPL) was lagging its similarly sized tech peers in capitalizing on AI, but as the industry shifts toward agentic AI -- or systems that can autonomously plan and execute tasks -- could it become a tailwind for Apple?

Image source: The Motley Fool.

Wall Street is starting to recognize Apple's potential in the AI industry, with several analysts expressing bullish sentiment. For instance, Wamsi Mohan, an analyst at Bank of America, recently increased his price target for the stock to $380, up from $330. The reason: Apple could be a winner of the shift to agentic AI. Mohan thinks that the iPhone maker could generate between $15 billion and $30 billion in AI-related revenue by the fiscal year 2030. Note that this is not that much revenue by Apple's standards, which generates over $400 billion in annual sales. However, provided agentic AI reaches the heights some expect -- Nvidia's CEO Jensen Huang predicted we will eventually have billions of AI agents -- it could be just the beginning for Apple.

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Source Fool.com