Wedbush analyst Dan Ives has revised the price target for Apple Inc. (NASDAQ:AAPL) from $250 to $275. The adjustment is to account for the anticipated iPhone 16 supercycle, driven by AI technology. This could potentially add $30 to $40 per share to the stock.

What Happened: On Thursday, Ives took to X to announce the price target revision. He attributed the change to the expected surge in iPhone demand, driven by AI technology, within the Apple ecosystem. Ives also highlighted the upcoming Worldwide Developers Conference as a pivotal moment for the company.

"Raising our Apple price target from $250 to $275 to reflect iPhone demand turning the corner into an AI driven iPhone 16 supercycle on the horizon. AI technology built into the Apple ecosystem adds $30 to $40 per share to the stock in our view," wrote Ives.

Raising our Apple price target from $250 to $275 to reflect iPhone demand turning the corner into an AI driven iPhone 16 supercycle on the horizon. AI technology built into the Apple ecosystem adds $30 to $40 per share to the stock in our view. WWDC a key moment ahead for

Why It Matters: This announcement comes in the wake of a series of events that have been shaping the narrative around Apple's future. Just a few days ago, Ives had already hinted at a potential turnaround for the tech giant, dubbing it a "Renaissance Of Growth." This was seen as a significant moment for the company, especially ahead of the WWDC.

Moreover, Ives had previously pointed out that the "seeds" for Apple's revival in China were being planted, and that patience was required to navigate the temporary weakness. This was seen as a positive sign for the company's future, especially in light of the recent developments.

Furthermore, the potential of AI in the tech industry has been a hot topic of discussion. A recent report suggested that AI on iOS could drive higher institutional ownership of Apple's iPhone, potentially leading to a 23.5% upside for the stock. This further underscores the significance of Ives' latest announcement.

Meanwhile, Steve Eisman of "The Big Short" fame also highlighted Apple as a "hidden" play in the AI space, further adding to the growing interest in the company's AI potential.

Price Action: Apple stock closed at $186.88, down 2.11% for the day, but remains up 0.67% year to date, according to the data from Benzinga Pro.

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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote