Can Apple Enjoy a “Siri Surge” as Apple Catches Up in AI?

Shares of Apple (NASDAQ:AAPL | AAPL Price Prediction) plunged into correction territory on Thursday as the losing streak extended to a whopping seven sessions. Even as the market marched higher in the first few sessions of 2026, Apple stock has been gravitating lower.

Alphabet (NASDAQ:GOOGL) is now officially the larger company by market cap, and it’s unclear if the iPhone maker can retake the lead, given the perception of being behind in the AI race might be weighing down sentiment again. Add the recent Raymond James downgrade into the equation, and worries about whether the foldable iPhone will be delayed, or worse, fall short of expectations as the iPhone Air did, and it’s easy to take some profits off of the tech juggernaut.

As Apple’s stock negative momentum picks up, investors might be running the risk of discounting some big catalysts in store for 2026. Notably, the big spring-time Siri upgrade might finally help Apple make several strides forward in the AI race.

Apple stock’s correction feels overdone, especially if the coming Siri upgrade leads to a “Siri surge”

With several AI names in the market picking up speed again, perhaps the perception that Apple is trailing in AI is starting to work against the stock. After the latest 10% dip, the stock goes for a more palatable 34.6 times trailing price-to-earnings (P/E), putting it more in line with its Mag Seven rivals.

Personally, I think the correction in shares of Apple is more of a gift than anything, given we’re getting closer to that big Siri upgrade that users have been waiting for. Will the new and improved Siri be worth the wait? I have no idea, but I think the Google Gemini partnership could be a game-changer. Apple is using the very best model on the market.

And if Apple can add polish to the experience, adding a layer of privacy, security, and perhaps a few surprises, Siri 2.0 might be the one AI catalyst that takes the iPhone upgrade cycle into overdrive. I’ll try to avoid using the term “supercycle,” since predictions just never came to fruition when the company debuted Apple Intelligence more than a year ago. Indeed, expectations were high ahead of the first phase of Apple Intelligence.

Apple seems unlikely to fumble on AI in 2026

Now, it feels like Apple has already made the moves and taken its time to get things right, but nevertheless, expectations feel far lower while the potential transformative impact of Siri 2.0 overhaul (with Gemini running under the hood) could mark the biggest software upgrade ever, while forever changing the way we interact with our smartphones, tablets, laptops, and other Apple devices.

Whenever you have a stock sinking as we get closer to such a catalyst, I think the setup for a surprise surge (let’s call it a “Siri surge”) increases. Given analyst commentary, including from the likes of Raymond James, it’s not hard to think that expectations are tempered ahead of Siri 2.0.

Though it’s too early to tell, I do not believe that Apple is going to fumble the ball twice when it comes to AI. In fact, I think the odds are high that Apple will deliver a product that may very well be indispensable. In a prior piece, I highlighted that hyper-personalization is a differentiating factor that could determine which AI product wins the consumer-facing race.

AI is about to get personal. That bodes well for Apple in 2026

With Google recently giving Gmail a big AI makeover, it appears that the battle for personalized AI has kicked off. While Gmail and Gemini integration make for a powerful combo, I do think that tying the Apple ecosystem with AI could have a much bigger effect. At the end of the day, iPhone users entrust Apple with so much more of their data than most other firms.

And it’s access to data that will be key as models become more personalized, whether we’re talking at the consumer level or in the enterprise. If Siri 2.0 hits, and the next wave of AI updates make better use of Apple’s neural engine, perhaps 2026 will be the year Apple finally catches up in AI, and that iPhone supercycle finally hits.

The iPhone 17 was a hot seller, even without the Siri overhaul. I think that bodes well for Apple as the biggest form factor change ever (foldable iPhone) arrives.

Whether it’s the foldable’s potential or the biggest Siri upgrade to date, I think it makes no sense that Apple stock is correcting in the face of such game-changing catalysts. In my view, the only thing more impressive than Gemini as it gains ground in the AI race is Gemini with Apple’s privacy-first, personalized touch.

Deepwater Asset Management’s Gene Munster thinks Apple will have a big first half of the year. Though it seems like 2026 is lost after a rough start, I do think Gene will be proven right as Apple aims to get Siri 2.0 right.