Wall Street's renowned market observer, Josh Brown, co-founder and CEO of Ritholtz Management, has thrown his weight behind Apple, labeling the tech titan a "sleeping giant" in the burgeoning artificial intelligence landscape. Speaking on CNBC's "Halftime Report" on Tuesday, Brown confidently declared Apple as the "name of the Mag Seven [to own] for the second half" of 2026, suggesting the market has overlooked its immense AI potential.
Brown highlighted Apple's unique advantage: its colossal consumer base. With over 2 billion iPhone and smart device users, Apple is uniquely positioned to monetize AI advancements by offering premium features through iCloud+ subscriptions. This strategy, Brown argues, provides a less capital-intensive pathway to AI dominance compared to its Magnificent 7 peers, who have invested heavily in infrastructure.
"The conversation was [about] Apple's late[ness] to AI," Brown observed. "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 in perspective could be a game-changer for the company.
Brown projects Apple shares could soar to $400, implying a substantial 28% upside from Monday's close. He points to several catalysts expected to propel the stock higher in the coming six months. This bullish outlook aligns with a broader re-evaluation by investors of the capital-intensive AI strategies pursued by other hyperscalers. While Microsoft and Nvidia have seen dips of 6% and 4% respectively over the past month, Apple has bucked the trend, gaining over 1%.
Further tailwinds for Apple include the anticipated launch of its foldable iPhone this fall, a product expected to reignite consumer interest. Additionally, improving iPhone sales performance in China, following a period of sluggishness, is set to provide another significant boost to the stock.
Brown's optimistic call largely echoes the sentiment across Wall Street. LSEG data indicates that 31 out of 48 analysts covering Apple currently rate it a buy or strong buy, with a consensus price target of $316, although Brown's target significantly surpasses this.
