Apple Investors Are Still Waiting for an AI Siri. A New Deal With Google Could Help It Deliver

Could a new deal with Google help Apple sell investors on its AI Vision?

The iPhone maker plans to use Google's Gemini to power future Apple Intelligence features, including an AI-enhanced Siri coming later this year, the companies said Monday, ending months of speculation about a tie-up. 

Shares of Google parent Alphabet (GOOGL) climbed 1% to an all-time high following the news, pushing its end-of-day market capitalization above the $4 trillion mark for the first time. Apple (AAPL) shares ticked up 0.3%, leaving them about 9% off their highs last month.

Wedbush's Dan Ives, a longtime Apple and Alphabet bull, called the deal a "major validation moment" for Google's Gemini and a key "stepping stone" for Apple in its strategy after a series of delays in some of its highly anticipated AI features. The iPhone maker had previously suggested its AI-powered Siri would become available as early as last spring, before later telling investors it would launch this year.

JPMorgan analysts, who hold an "overweight" rating for Apple, said they also see the multi-year partnership with Google potentially becoming a longer-term arrangement, with investors likely to be watching whether Apple will declare an AI model partner in China next.

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"In our view the Street is underestimating what 2026 is going to bring for Apple," said Ives, citing expectations the company could make more meaningful progress in its AI roadmap this year. He reiterated a Street-high target of $350 for the stock, suggesting close to 35% upside from Monday's close.