Josh Brown Touts Apple as 'Sleeping Giant' AI Play with 28% Upside, Poised to Dominate Magnificent 7

Josh Brown Touts Apple as ‘Sleeping Giant’ AI Play with 28% Upside, Poised to Dominate Magnificent 7

Last updated: July 8, 2026 7:29 am

3 weeks ago

1 Min Read

Josh Brown, CEO of Ritholtz Management, identifies Apple as a “sleeping giant” in AI, positioned to lead the Magnificent 7 into 2026. He projects Apple shares could hit $400, citing its vast user base and subscription model for premium AI features as key differentiators from capital-intensive peers like Microsoft and Nvidia. Catalysts include improving iPhone sales in China and an anticipated foldable iPhone launch, reinforcing Wall Street’s largely bullish sentiment.

Despite being perceived as a latecomer to the artificial intelligence arena, Apple is strategically positioned to emerge as a dominant AI player, according to Josh Brown, co-founder and CEO of Ritholtz Management. Speaking on CNBC's "Halftime Report" on Tuesday, Brown dubbed Apple the "sleeping giant hidden in plain sight" among the Magnificent 7 stocks, urging investors to consider it a key holding for the latter half of 2026.

Brown anticipates Apple shares could reach $400, suggesting a substantial 28% upside from Monday's closing price. This optimistic outlook is fueled by several potential catalysts expected to propel the stock higher over the next six months. A crucial advantage for Apple, Brown highlighted, is its immense user base. With over 2 billion iPhone and other smart device users, Apple is uniquely poised to monetize AI integration by offering premium AI features through iCloud+ subscriptions. This strategy differs from its Magnificent 7 counterparts, which have largely pursued more capital-intensive AI ventures.

The market narrative around Apple's AI presence is rapidly evolving. Brown noted, "The conversation was [about] Apple's late[ness] to AI... All of a sudden, that narrative shifts to 'holy cow, Apple is the company with two-and-a-half billion devices currently providing access to every large language model, every AI app, to their users, taking a toll on every transaction.'" This shift comes amidst increasing investor scrutiny of the significant capital expenditures associated with AI initiatives by other hyperscalers, including Microsoft and Nvidia, which have seen declines of 6% and 4% respectively over the past month, while Apple has gained over 1%.

Further bolstering Apple's prospects are the expected launch of its foldable iPhone this fall and a noticeable improvement in iPhone sales within the Chinese market, which previously experienced a slump. These factors could provide additional momentum for the stock. Brown's bullish stance aligns with broader Wall Street sentiment, as LSEG data indicates that 31 out of 48 analysts covering Apple recommend a buy or strong buy rating, with a consensus price target of $316.