Apple's Potential AI Acquisition: Perplexity Deal Could Boost Stock and AI Capabilities

A rumored AI acquisition would get Apple stock out of 'penalty box,' says Bank of America

Apple reportedly weighing the acquisition of Perplexity AI could mean a boost for the iPhone maker's shares, according to Bank of America. "Any such deal (we do not have any direct knowledge of the probability of such a deal) would likely be positive for shares that are currently in the penalty box given Apple is largely viewed as an AI laggard (deep Siri integration delayed and no cutting edge models)," wrote analyst Wamsi Mohan, who maintained his buy rating on Apple. His $235 price target also implies more than 16% upside from Monday's close. "Perplexity AI could address some of key issues including quick access to a voice assistant (better than Siri) and could be a hedge to the risk of having Google as a default search engine," he continued. The analyst's comments come after Bloomberg, citing people familiar with the matter, reported Friday that Apple executives have held internal discussions about buying the artificial intelligence startup. The report said Apple executives have not discussed a potential bid with Perplexity management, however. Meanwhile, Apple shares have struggled in recent months. They've fallen more than 22% in the past six and about 20% in 2025, significantly underperforming the broader market. AAPL 6M mountain AAPL, 6-month Wamsi said any positive developments related to AI initiatives in the near term would be positive for the stock and could lead to multiple expansion. To be sure, if any deal were to come to fruition, it would mark the largest acquisition ever for Apple, which "itself creates some risk," he wrote. Risks include those associated with regulation, talent retention and integration as a result of merging the technologies, among others, he said. Apple could also pursue a partnership with Perplexity AI rather than a complete takeover, Wamsi proposed. However, while this option might be a "more balanced approach," it may not spur the same level of multiple expansion for the stock, he noted. On Tuesday, shares were marginally lower in morning trading, reversing the gains the stock posted in the previous session on the heels of the acquisition report.

Apple May Finally Catch Up In AI, Analyst Says - Apple (NASDAQ:AAPL)

BofA Securities analyst Wamsi Mohan maintained a Buy rating on Apple Inc AAPL with a price target of $235 on Tuesday. The rerating reflected strong capital returns, AI leadership and optionality from new products or markets. Mohan said media articles indicated Apple's plans to either acquire or forge a partnership with Perplexity AI, which has an answer engine that delivers direct, cited responses to search queries using third-party LLMs. Also Read: Alibaba Updates LLMs To Power AI On Apple Devices In China As per the analyst, any such deal would likely be positive for shares, given that Apple is primarily viewed as an AI laggard (amid the delay of deep Siri integration and lack of advanced models). Mohan said that Perplexity AI could address key issues, including quick access to a voice assistant (allegedly better than Siri), and could hedge the risk of having Google as a default search engine. The analyst said a potential deal could boost Apple's access to an AI company with AI search and answering capability, talent and AI expertise, product synergies driven by improving Siri and monetizing hardware and services, access to the search advertising market as an alternative to Alphabet's Google, and strategic independence on AI. He noted that Apple could also benefit partially by choosing the partnership route. Mohan projected fiscal 2025 sales of $407.69 billion and EPS of $7.13. AAPL Price Action: AAPL stock is up 0.65% at $202.82 at publication on Tuesday. Read Next: Accenture's Raised Outlook Fails To Ease Fiscal 2026 Softness Worries: Analyst Photo: Shutterstock AAPLApple Inc$202.630.56%Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock RankingsEdge RankingsMomentum26.71Growth32.68Quality76.16Value9.13Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs

Apple: BofA says buy; reviews Perplexity rumor

On Tuesday Bank of America reiterated its buy recommendation and $235 price target for Apple shares, amid press reports that the tech giant may be interested in Perplexity, an innovative search engine powered by artificial intelligence (AI). In its view, such a move would be positive for the Californian group's share price, which is currently penalized by investors' perception that Apple has fallen behind in the field of AI. Perplexity AI could address some key issues such as the need for rapid access to a voice assistant that outperforms Siri and the risk of retaining Google as the default search engine, BofA explains. The deal would also give Apple access to cutting-edge technology, allow it to partner with a talented team, prevent Perplexity from falling into the hands of a competitor, and ensure its strategic independence in AI, the bank adds. On the downside, it cites the potential risks of integrating the two technologies, regulatory and legal obstacles, and the potential disruption of the existing relationship with Google. If the transaction goes ahead, it would be the largest acquisition in Apple's history, which in itself presents a certain risk, BofA concludes. Copyright (c) 2025 CercleFinance.com - All rights reserved.