Investing.com -- Apple Inc. (NASDAQ: AAPL) shares rose 0.80% as Wedbush raised its price target on the stock from $350 to $400, citing the company's entry into the AI Revolution.

The firm estimates roughly 20% of the world's population will access AI through an Apple device over the coming years, marking a shift in the company's position in the artificial intelligence space.

Wedbush analysts commented, "We believe over the next few years Apple will be able to monetize the AI Services and storage features translating into what could be an additional $15 billion of annual services revenue for Apple as it starts to become the 'consumer hub of AI' technology for its global user base. In China despite Beltway scrutiny we believe Apple's partnership with Alibaba on AI will become more important as Cupertino goes after its massive and growing installed base in China. These are all incremental steps leading to an AI enabled Apple iPhone likely with significant redesigns in 2027 on the 20th anniversary edition."

The analysts highlighted Apple's partnership with Alibaba for AI features in China as a key component of the company's strategy to expand its installed base in the region.

Wedbush's revised price target reflects expectations that Apple will generate an additional $15 billion in annual services revenue through AI-related features and storage offerings. The firm also pointed to potential significant iPhone redesigns in 2027, coinciding with the device's 20th anniversary.