The artificial intelligence (AI) revolution is poised for a new chapter, and this time, it’s coming to the consumer through a familiar and powerful conduit: Apple. According to Dan Ives, senior research analyst at Wedbush Securities, Apple is not just launching a new iPhone this year—they are kicking off what he calls an “AI super-cycle.” In a recent interview, Ives predicted that Apple will become a significant force in AI adoption, with 25% of the world eventually accessing AI through an Apple device. “This is the consumer AI revolution now going through Apple,” Ives remarked, positioning the tech giant at the center of a sweeping transformation.

A Historical Moment for AI

The introduction of AI capabilities into Apple’s iPhones marks what Ives believes will be a historical moment, not just for Apple but for the entire tech industry. “If you look at Microsoft and its partnership with OpenAI, they ignited a new wave of AI applications. Now, Apple is bringing that revolution to its massive global consumer base,” Ives said. With over 1.5 billion active Apple devices worldwide, the company has an unparalleled reach, and its ability to influence consumer behavior is unmatched. “Apple’s role here is crucial,” Ives explained. “Where would AI be right now if Microsoft hadn’t partnered with OpenAI? It would not have reached this level of adoption. Now, Apple is taking that torch and running with it, bringing AI to the everyday consumer.”

This “AI super-cycle,” as Ives calls it, is not just about flashy new iPhone features—it’s about setting the stage for AI integration across various sectors. “When 25% of the world accesses AI, it will be through an Apple device,” Ives predicted, underscoring how Apple’s ecosystem will be key to scaling AI technologies that have, until now, largely been confined to enterprise use cases and tech enthusiasts.

Apple’s Super-Cycle: More Than Just Hardware

Apple’s AI ambitions are not limited to hardware upgrades. Ives points out that AI’s potential lies in software and services, where the company is likely to drive significant revenue growth. “For Apple, it’s about monetization,” Ives explained. “We think AI could add $20 to $40 per share, and that’s how you get Apple to a $4 trillion market cap.” He believes that Apple’s unparalleled install base—both in hardware and software—gives it a unique advantage in driving AI adoption on a massive scale.

What makes this shift even more intriguing is that Apple isn’t necessarily the first company to the AI party. Companies like Microsoft, Google, and Nvidia have been leading the charge, but Apple’s strength lies in its ability to bring AI to the masses. “Were they first? No,” Ives said. “But betting against Cupertino and [CEO Tim] Cook in an AI-driven super-cycle is a bad bet.” According to Ives, Apple’s vast, loyal user base will ensure that the company is a major player in the AI space, even if it didn’t pioneer the technology.

Nvidia and Broadcom: The Infrastructure Behind the Revolution

While Apple is set to bring AI to consumers, it’s essential to remember that this revolution doesn’t happen in a vacuum. Chipmakers like Nvidia and Broadcom provide the critical infrastructure necessary to power these AI applications. “For every dollar spent on Nvidia chips, there’s an 8-to-10 multiplier across the rest of tech,” Ives noted. Nvidia’s dominance in AI hardware, especially through its GPUs, has been well-documented, but Ives believes that Broadcom is an “under-the-radar AI play” that will soon make its mark.

“Broadcom’s revenue from AI products reached a record $3.1 billion last quarter,” Ives pointed out. “That could ramp up to $15 billion annually.” According to Ives, Broadcom plays a crucial role in the AI ecosystem by providing the infrastructure for hyperscale data centers used by Microsoft, Google, and Amazon. “It’s all about where the data goes,” he explained. “Broadcom is positioning itself as a major beneficiary of AI growth, even if investors haven’t fully appreciated its potential yet.”

The Consumer and Corporate AI Divide

While much of the excitement around AI has been focused on corporate use cases, from automating workflows to enhancing cybersecurity, Ives sees the consumer side as just as critical. “There’s the corporate side of AI, where businesses are using it to drive efficiency and innovation. But the consumer-facing side, where most of us interact with AI through apps and services like ChatGPT or Siri—that’s where Apple comes in,” Ives explained.

By embedding AI into iPhones and other devices, Apple is not just creating new tools for users—it’s setting the stage for a cultural shift in how consumers interact with technology. “When Apple introduces AI into its devices, it’s not just about adding new features,” Ives said. “It’s about changing how people think about technology and what it can do for them. That’s where the revolution really happens.”

Tesla and the AI Ecosystem

Apple is not the only player in this evolving AI landscape. Ives also highlighted Tesla as an undervalued AI play, noting that the electric vehicle (EV) company’s AI ambitions extend far beyond autonomous driving. “Tesla is much bigger than just EVs—it’s about AI and automation,” Ives said. He believes that Tesla’s upcoming “RoboTaxi Day” will mark the next phase of the company’s growth. “Tesla is in between two growth waves right now, but the real Golden Goose for them is AI, specifically their autonomous driving technology,” he explained. For Ives, Tesla represents a broader trend where AI is becoming integrated into everything from transportation to energy management.

A New Frontier for Apple

As Apple gears up to launch its new iPhones with AI capabilities, Ives sees this moment as the beginning of a new frontier for both the company and the tech industry as a whole. “This is not just about upgrading hardware—it’s about creating a new ecosystem where AI is a central part of the consumer experience,” Ives said. He believes that Apple’s ability to seamlessly integrate AI into its products will set it apart from competitors and drive its next phase of growth.

The AI super-cycle is just beginning, and with Apple leading the charge, the future looks bright for both the company and its investors. “Apple’s AI story is about monetization and consumer adoption,” Ives concluded. “With their massive install base and Tim Cook’s leadership, Apple is set to redefine the consumer tech landscape once again.”

In a world where AI is quickly becoming the next big thing, Apple’s role in driving consumer adoption could well be the defining moment of the AI revolution. The tech giant is not just adding to the AI conversation—it’s poised to lead it. And as Ives puts it, “Betting against Cupertino in this AI super-cycle? That’s a bad bet.”