Apple may have gotten a late start in the artificial intelligence race, but iPhone maker is poised to leverage its massive consumer base to become an AI winner, Josh Brown, co-founder and CEO of Ritholtz Management, told CNBC on Tuesday. “This is the name of the Mag Seven [to own] for the second half,” of 2026, Brown told CNBC’s ” Halftime Report ” on Tuesday. “It’s like a sleeping giant hidden in plain sight. Everyone’s been looking past it.” Apple shares could soon climb to $400, Brown said, pointing to several catalysts that are likely to drive the stock higher over the next six months. His price target implies roughly 28% upside from Monday’s close. Notably, Apple stands to capitalize on widening AI use by charging its more than 2 billion iPhone and other smart device users fees to access premium AI features behind iCloud+ subscriptions, giving it an edge over its Magnificent 7 peers that have bet on more capital-intensive AI initiatives, according to Brown. “The conversation was [about] Apple’s late[ness] to AI,” Brown said. “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.'” Brown’s comments come as investors are increasingly re-evaluating capex-heavy AI initiatives by hyperscalers, including other stocks in the so-called Magnificent 7. Over the past month, the CNBC Magnificent 7 Index is little changed, underperforming the wider market. Microsoft and Nvidia have shed 6% and 4% over the same period, while Apple added more than 1%. Apple may also benefit from the release of its foldable iPhone, which is expected to debut this fall, Brown said. IPhone sales also seem to be improving in China, following a period of lackluster performance, which could also boost the stock, he said. Brown’s call matches the consensus on Wall Street, where 31 of 48 analysts covering Apple rate it a buy or strong buy, LSEG data shows. Analysts’ consensus price target on Apple stands at $316.
Josh Brown likes this ‘sleeping giant’ AI play and Magnificent 7 member
