Apple is only days away from its annual Worldwide Developers Conference, and investors are focused on whether the company can finally deliver the long-awaited AI-powered Siri.
The June 8 keynote event is expected to showcase the next generation of iOS, iPadOS, macOS, and watchOS features. But this year, much of the attention is on artificial intelligence as Apple tries to catch up with rivals such as Google, OpenAI, and Anthropic.
Apple has spent the past year gradually rolling out Apple Intelligence features, but delays surrounding Siri upgrades have frustrated some users and investors.
The iPhone remains Apple’s largest business. Industry estimates suggest the company shipped about 247.8 million iPhones in 2025, while analysts estimate roughly 80% to 85% of active iPhones currently cannot run Apple Intelligence natively, TheStreet Pro previously reported.
That has fueled speculation that a significantly improved Siri experience could eventually trigger a broader iPhone upgrade cycle.
Apple (AAPL) stock has climbed 14.12% this year as of June 3, ranking third among the Magnificent Seven, trailing Nvidia (NVDA) and Alphabet (GOOGL), according to Morningstar data.
As WWDC approaches, investors are looking for signs that Apple can regain momentum in AI after lagging some megacap peers in launching AI products.
Morgan Stanley sees WWDC as major catalyst for Apple stock
Morgan Stanley believes WWDC could mark a turning point for investor sentiment.
“The ‘AI winner’ narrative has served as an inflection point for many stocks since 2023,” the firm said in a research note sent to TheStreet. Analysts added that “WWDC 2026 could catalyze a similar shift for Apple.”
Apple stock closed at $310.26 per share on June 3.
Morgan Stanley said Apple’s AI efforts have so far played only a minor role in the investment story, with the company’s recent performance largely driven by the strength of its products and services businesses.
That could begin to change if Apple delivers a clearer vision for Siri and Apple Intelligence.
“To date, Apple has performed purely on the back of underlying Products and Services strength; AI has been effectively irrelevant to the story. But as we’ve seen across numerous companies and industries over the last 12-24 months, being seen an ‘AI Winner’ drives a clear inflection in fundamentals, valuation, and sometimes both,” the analysts wrote.
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The firm expects the centerpiece of WWDC to be a more conversational Siri with stronger contextual awareness, persistent chat history, deeper app integration, and more natural chatbot-like interactions.
Morgan Stanley also expects Apple Intelligence capabilities to expand across iOS, macOS, and iPadOS, with improved writing tools, image generation features, AI-powered shortcuts, and broader integration throughout Apple’s software ecosystem.
The bank said Apple’s privacy-focused approach and growing partnerships with outside AI providers could help differentiate the company from rivals.
“We believe Apple’s Worldwide Developers Conference (WWDC) is a clear catalyst that can help shift Apple into the ‘AI Winner’ bucket,” analysts wrote, arguing that Apple now has the technology, scale, and ecosystem needed to compete more effectively in AI.
Apple stock can rally to $440 a share
While Morgan Stanley sees significant upside, the firm said execution remains the biggest question.
Investor and consumer expectations have fallen over the past year as Apple Intelligence launches failed to generate the same enthusiasm that followed WWDC 2024.
“Importantly, investor expectations for Apple’s AI reboot remain relatively low,” the bank wrote.
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According to Morgan Stanley, this creates a favorable setup heading into the event because expectations are considerably lower than they were before last year’s conference.
The firm said investors will be looking for confirmation that previously announced Apple Intelligence features are on track, deeper integration with large language models such as ChatGPT and Gemini, expanded cloud infrastructure, and clearer examples showing why consumers would use Apple’s AI tools instead of standalone chatbot apps.
“If Apple can check these boxes, we believe the stock narrative should shift,” analysts said.
Morgan Stanley outlined three possible scenarios following WWDC.
In its base case, which carries a 65% probability, Apple delivers meaningful AI improvements and clearer rollout plans, allowing investors to begin modeling future monetization opportunities across hardware and services. Under that scenario, the bank believes shares could eventually trade between $365 and $385.
A more bullish outcome could push the stock as high as $440 if Apple exceeds expectations and convinces investors it can become a major platform for AI-powered services and commerce.
“Siri/Apple Intelligence 2.0 has the potential to become the ultimate AI resource offload and deliver a form of Agentic AI to the consumer at a lower cost than incumbents…If WWDC 2026 successfully outlines this path, we see valuation potentially reaching $365-385, all the way up to $440 per share,” Morgan Stanley wrote.
Apple stock closed at $310.26 per share on June 3.