Apple (AAPL) investors just got an important reality check. AAPL stock has delivered a strong run so far in 2026, but Bank of America is warning that the next major threat may not come from weaker iPhone demand. Instead, it could come from the way people use their phones.
BofA analyst Wamsi Mohan recently highlighted Meta Platforms' (META) new Muse artificial intelligence (AI) agent as a potential threat to Apple’s Services business. Muse can search for products, complete tasks, and handle transactions inside the AI experience, potentially reducing the role of operating systems and app stores in the process.
More Top Stocks Daily: Go behind Wall Street’s hottest headlines with Barchart’s Active Investor newsletter.
That could hurt Apple because the company does not just make money by selling iPhones. Its enormous installed base also supports a highly profitable Services ecosystem. BofA’s concern is that AI agents could increasingly sit between users and the digital services they want.
About Apple Stock
Shares of Apple have rallied decently in 2026 after having a rough go of it last year. AAPL stock is up 24% year-to-date (YTD). This performance has come amid strong financial results, optimism around the company's product cycle, and renewed investor attention in regard to its AI strategy.
But the stock has also shown how quickly sentiment can change. Shares dropped 2.7% on Sept. 29 after BofA’s warning about Muse, although Apple did recover by about 1% in the following session. The concern is less about whether consumers will stop buying iPhones and more about what happens after those devices are in their hands.
www.barchart.com Why Meta’s Muse Matters to Apple
Muse is proving to be a hot trend to catch. Meta debuted the AI assistant in early September. Since then, Muse has been downloaded more than 6 million times, having quickly reached the top spot in the U.S. App Store. The AI assistant can surf the internet, fill out forms, book travel, and make purchases, leveraging commerce integrations with Shopify (SHOP), Expedia (EXPE), PayPal (PYPL), and more.
That is what poses a structural risk, according to BofA.
Consumers have been able to find products via an app associated with Apple, a search engine, or a payment service for some time. In the future, however, an agent like Muse could be responsible for a lot of that trip itself. Mohan thinks Apple might just be able to hold onto hardware sales, while forfeiting some of the discovery, referral, and transaction that reached the device.
Apple's Siri is getting more capable, but BofA says it's missing out on some of the more persistent background actions and capabilities as far as third-party actions go. The speed of Apple and the competition's respective developments could also play a role, as AI agents can be developed constantly, whereas Apple's software tends to come out via big releases at regular intervals.
Apple Reports Solid Q3 Earnings
For now, the underlying business remains strong. Apple reported fiscal third-quarter revenue of $109.4 billion, up 16% year-over-year (YOY). iPhone, Mac and Services all reached June-quarter revenue records, while diluted EPS jumped 29% YOY to $2.02 per share. Operating cash flow reached a record level during the quarter as well.
The June quarter also showed why investors continue to place such a premium on Apple stock. The company’s installed base of active devices reached another record, giving Apple a massive audience for future products, services, and AI features.
That installed base could ultimately become one of Apple’s biggest advantages if AI agents become more mainstream. Users already trust Apple with payments, personal information, and connected devices, which BofA believes could help it compete as AI moves closer to handling sensitive tasks.
Still, the next quarter could be more complicated. Apple expects September-quarter revenue to rise 9% to 11% YOY, while iPhone revenue is projected to grow by the mid-teens. That would still represent solid expansion, but at a slower pace than the 16% revenue growth seen in Q3.
What Is Wall Street Saying About Apple Stock?
The threat posed by AI agents is still not universally clear, as analysts disagree about the extent to which they could disrupt businesses like Apple.
Mohan noted that he remains cognizant of Apple's installed base, the company's positioning around privacy, and device-level AI capabilities to support its long-term opportunity. The BofA analyst maintained a “Buy” rating on AAPL stock with price target of $370 per share. Meanwhile, Morgan Stanley maintained a “Overweight” rating while lowering its target slightly to $355. Evercore ISI has a price target of $380 per share, while JPMorgan has a $340 price target.
Conversely, UBS analyst David Vogt has a “Hold” rating for Apple stock while Jefferies analyst Edison Lee has an “Underperform” rating. The analysts have price targets of $296 and $263.66 per share, respectively.
Overall, based on 40 analysts with coverage, Apple stock has a consensus “Moderate Buy” rating. The average price target of $331.58 has been surpassed by current price levels, suggesting that Wall Street sees little potential upside but maintains an overall positive outlook. Still, it has a new question to ask about Apple's future revenue share from the Services side of its business.
www.barchart.com On the date of publication, Nauman Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
More news from Barchart
BofA Just Sent a Warning Shot for Apple Investors Why Nvidia Stock Is Worth Buying Before It Touches $327 Dear JPMorgan Stock Fans, Mark Your Calendars for Oct. 13 How to Play Rubrik Stock at New All-Time Highs