Apple (AAPL) and innovation have always walked hand in hand. Yet in the rapid-fire race of artificial intelligence (AI), one of the world’s most valuable companies has been uncharacteristically quiet. While competitors surged forward with AI-native devices and bold LLM integrations, Apple leaned on partners like OpenAI just to stay visible. Its own Apple Intelligence barely made a dent in the public imagination. 

But now, Apple seems ready to flip the script. It is reportedly preparing to enter the smart glasses market, with plans to launch AI-enabled eyewear by 2026. These glasses are expected to feature cameras, microphones, speakers, and integration with Siri, aiming to compete with Meta’s (META) Ray-Ban smart glasses and Google’s (GOOG) (GOOGL) upcoming Android XR devices.

Although Apple is late to the AI party, such futuristic developments look extremely interesting. Could these glasses be Apple’s ticket back to the front, enough for investors to grab its shares?

About Apple Stock

California-based Apple (AAPL) is a global tech titan with a $2.99 trillion market cap. As a core member of the Magnificent Seven, Apple leads with iconic products like the iPhone, iPad, and Mac, while its growing services segment fuels steady revenue. 

Though Apple wears the crown of innovation, AAPL stock has not been bulletproof in 2025, sliding 20% on a YTD basis. Trade tensions have heated up, with looming tariffs pressuring Apple to reshuffle its global manufacturing. Regulatory headwinds and mounting competition have chipped away at investor confidence. 

Apple’s Q2 Results Surpassed Projections

Apple’s fiscal second quarter earnings of 2025 painted a picture of strength. On May 1, the Cupertino giant posted $95.4 billion in revenue, up 5% year over year, while net income surged to $24.8 billion. Earnings per share climbed 8% to $1.65, beating Wall Street’s expectations by 2.5%.

CEO Tim Cook pointed to soaring demand for the iPhone 16e and momentum from new Mac and iPad models, both powered by Apple’s custom silicon. But the true standout was services - Apple TV+, Music, and the App Store - pulling in $26.6 billion, flexing double-digit growth and hinting at the ecosystem’s growing pull.

iPhone sales led the charge with $46.8 billion, while Mac and iPad units brought in $8 billion and $6.4 billion, respectively. The Wearables segment added $7.5 billion. Apple ended the quarter with $24 billion in operating cash flow, returning $29 billion to shareholders.

Records were made in India, Brazil, and the U.K., but Wall Street blinked. Shares dipped amid worries over a $900 million impact from U.S. tariffs in the June quarter and a 2.3% drop in China sales to $16 billion. Cook brushed off tariff anxieties, pointing to Apple’s production pivot with more iPhones now built in India, and more hardware assembled in Vietnam. The company is spreading roots further, too, planting new retail locations in India, Saudi Arabia, and the UAE.

Analysts monitoring the company remain optimistic, predicting its EPS to be around $7.11 for fiscal 2025, up 5.3% year over year, before surging by another 7.9% annually to $7.67 in fiscal 2026.

Smart Glasses Might Be Apple’s AI Comeback

Apple may have shown up late to the AI party, leaning on OpenAI and Google to power its early features, but now it is plotting its own path. Behind closed doors, engineers are racing to bring AI-powered smart glasses to life by 2026. Apple is developing specialized low-power chips for these glasses, inspired by Apple Watch processors, to efficiently handle multiple cameras and AI functionalities. 

Apple’s smart glasses signal more than just a hardware pivot - they mark a calculated step into AI wearables, aiming to tighten its ecosystem and spark fresh revenue. While Meta and Google already have skin in the game, Apple’s late arrival could still shift the market, thanks to its design finesse and chip mastery. If executed right, these glasses won’t just capture photos – they will capture market share.

For investors, it is a glimpse at Apple flexing its innovation muscle again, despite trailing in the AI race. The question now is whether Apple’s vision can truly outshine the competition - or blur into the crowd.

What Do Analysts Expect for Apple Stock?

AAPL stock has a consensus “Moderate Buy” rating overall - a vote of confidence tempered with caution. Out of 37 analysts covering the tech stock, 18 recommend a “Strong Buy,” four give a “Moderate Buy,” 12 analysts stay cautious with a “Hold” rating, one has a “Moderate Sell” rating, and two have a “Strong Sell” rating.

The average analyst price target for AAPL is $231.02, indicating a potential upside of 15.5%. The Street-high target price of $300 suggests that the stock could rally as much as 50%.