Apple Inc. AAPL is on the brink of a “consumer AI Revolution” with the imminent rollout of its new artificial intelligence system, according to a leading analyst.

What Happened: Dan Ives, an analyst at Wedbush Securities, took to X to share his forecast for Apple’s AI future. Ives predicts that the launch of Apple Intelligence 18.1, scheduled for the next day, will mark the start of a significant shift in the company’s trajectory. He also mentioned the forthcoming 18.2 version in December.

“This is the beginning of the consumer AI Revolution going through Cupertino and will kick off a true supercycle for Apple starting with iPhone 16,” Ives wrote. “We expect a strong iPhone performance for the Sept q/Dec guide.”

Ives emphasized that skeptics of Apple who have overlooked the company’s substantial rise—over $1 trillion in market capitalization—have misjudged three critical elements of Apple’s trajectory: the installed base and pent-up iPhone upgrade demand, the growth of services and their valuation, and the emerging role of AI in consumer technology.

“We believe bears/long time Apple naysayers that have missed the last $1 trillion+ upward move in market cap for Apple have miscalculated 3 important dynamics,” Ives wrote.

See Also: Palantir CEO Alex Karp On Partnership With L3Harris: They Are ‘Better Networked’ And Good At Understanding ‘DC Environment’ — Calls For More Lethal Tech To ‘Scare’ China And Russia

Why It Matters: This prediction comes on the heels of a series of events that have been shaping Apple’s AI narrative. Just last week, a Rosenblatt analyst expressed concerns about the AI-driven super cycle following a trend of declining smartphone upgrade rates.

However, Ives’ forecast suggests a different trajectory for Apple, one that aligns with the high expectations surrounding the Apple Intelligence system. This new AI system is a result of Apple’s use of prompt engineering to enhance accuracy and prevent hallucinations in its AI suite.

A Goldman Sachs analyst has forecasted stronger-than-expected fourth-quarter results for Apple Inc. ahead of its Oct. 31 release.

Price Action: Apple Inc closed at $231.41 on Friday, reflecting a gain of 0.36%, for the day. In after-hours trading, the stock dipped 0.24%. Year to date, Apple’s stock has seen significant growth, rising by 24.66%, according to data from Benzinga Pro.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.