Bank of America Securities kept its Buy rating on Apple with a $380 target after unveiling a Siri AI platform combining on-device processing, Private Cloud Compute and Google Cloud/Nvidia-powered infrastructure. The five-model AFM 3 suite, led by a 20 billion-parameter sparse Core Advanced model, could accelerate hardware upgrades and deepen ecosystem lock-in.
Apple unveiled a revamped Siri AI architecture at its 2026 developer conference, combining on-device processing, Private Cloud Compute and cloud infrastructure powered by Google Cloud and Nvidia GPUs to enable context-aware, multimodal intelligence across all devices.
The Apple Foundation Models (AFM 3) suite comprises two lightweight on-device models and three cloud-based models, including the Core Advanced 20 billion-parameter sparse model that selectively activates parameters per request for improved performance, latency and privacy.
Bank of America Securities maintained its Buy rating and $380 price objective, noting that while roughly half of AI queries may stay on-device by 2030, the advanced Cloud Pro model could drive 67% of cloud-compute costs, making efficient workload routing crucial for margin preservation and future upgrade cycles.
