Wedbush analyst Dan Ives has identified mergers and acquisitions as the crucial "missing piece" for Apple Inc. as it competes in the accelerating artificial intelligence arms race, expecting new CEO John Ternus to pursue a distinct strategic shift from his predecessor.

Moving beyond the Tim Cook era

Ives, Partner and Senior Managing Director at Wedbush, acknowledged Tim Cook as a "Mount Rushmore Hall of Fame CEO" while arguing that Apple's previous strategy may have caused the company to miss certain growth opportunities over the last decade. With Ternus now at the helm, Ives anticipates a clear departure from that playbook.

"Ternus is going to have his own fingerprints, his own stamp, more innovation," Ives told CNBC. "You're going to see hardware changes, and I think M&A is now potentially on the table for something that he's going to do in an AI era in this arms race."

Reshaping executive leadership

Ives also addressed recent personnel shifts, including Phil Schiller stepping down from App Store oversight to become an Apple Fellow. He suggested Ternus is actively assembling his ideal leadership roster, ensuring he has "all the right people" in the appropriate roles.

Ives anticipates Ternus will build a team combining internal Cupertino veterans with new external executives, blending "old ideas, but also some new ideas" to bring renewed innovation back to the company.

Monetising the 'golden install base'

Despite regulatory headwinds, Ives described Apple as entering this leadership transition in a "massive position of strength," noting that its privacy-focused ecosystem gives it a distinct advantage over competitors such as Meta Platforms Inc.

The key test for Ternus will be monetising Apple's "golden install base" of 1.5 billion iPhones and over 2 billion total iOS devices.

"He's getting handed the house, getting the keys at a great time now, but he will be judged on the AI era," Ives concluded. "That will be the success of Apple."

Apple stock performance

The following table summarises Apple's recent price performance as reported:

Apple stock closed 2.61% higher at $325.13 per share on Tuesday, with premarket trading on Wednesday showing a 0.13% decline at last check. The stock is up 19.59% year-to-date and has advanced 40.06% over the last year.

Deepwater Asset Management partner Gene Munster stated that Apple Inc (NASDAQ: AAPL) holds the upper hand in its escalating trade secret dispute with OpenAI. The analyst pointed to new evidence presented by Apple regarding alleged data theft by former employees as a key factor shifting the legal dynamic.

Analyst View on Legal Standing

Munster argued that Apple’s recent allegations are likely credible because the iPhone maker typically adopts a conservative legal approach. He noted that presenting false claims would be a reckless move for the company.

"In reviewing what both companies have said over the last 24 hours, it seems Apple has the upper hand," Munster wrote on X. He added that the market appears to be siding with Apple, noting that shares rose 3% on Tuesday while the Nasdaq fell 1%.

New Evidence Cited by Apple

Apple’s strengthened position stems from a forensic review of a MacBook belonging to Chang Liu, a former Apple employee who now works at OpenAI. The company told the court that Liu downloaded a confidential Apple circuit schematic and used it in his work at the AI developer.

Apple also alleged that Liu retained unauthorized access to internal data after leaving the company. The iPhone maker is seeking expedited discovery and a preliminary injunction to restrict OpenAI and the former employees from using or disclosing the alleged trade secrets during the proceedings.

OpenAI’s Defense Remains Unchanged

OpenAI continues to deny the allegations, calling the lawsuit "a mess of Apple’s own making." The AI developer argues that Apple failed to demonstrate any confidential information was stolen and blames the dispute on Apple’s own employee offboarding processes.

OpenAI emphasized that California law permits employee mobility and noted that Apple’s policy of immediately escorting departing staff does not allow sufficient time to return devices or transfer files. The company highlighted that it has hired approximately 400 staff members from Apple for its hardware initiatives.

Market Reaction

Apple closed at $325.13 on Tuesday, up 2.61%. In Wednesday’s premarket trading, shares were at $324.80, down 0.10%. Benzinga Edge Stock Rankings place Apple in the 97th percentile for Quality, citing strong performance across short, medium, and long-term metrics.

The legal conflict marks a sharp downturn in relations between the two tech giants, which entered a collaboration approximately two years ago to increase ChatGPT’s reach and support Apple’s AI efforts.