Wedbush Securities tech analyst Dan Ives described Apple's artificial intelligence strategy as a "disaster" during a Thursday interview, stating that the company is being overtaken by competitors including Microsoft, Google, Meta, and Nvidia.

Ives expressed that Wall Street lacks confidence in Apple's ability to drive significant internal innovation. He criticized Apple's internal AI development, pointing to products like Siri that have failed to make a strong impression.

When asked about the extent to which Siri needs improvement, he stated: "Nothing is going to happen internally," adding, "It's not going to happen internally, and no one on Wall Street believes that Apple will have any innovation when it comes to artificial intelligence."

Ives reiterated that acquisitions and partnerships are crucial for Apple. "They're going to have to make acquisitions. I mean, look, that's the reality of the situation," he said.

Previously, to help Apple narrow the AI gap, Ives had proposed a three-pronged approach: acquiring AI search engine Perplexity, recruiting top AI talent, and considering integration of Google's Gemini AI.

Nevertheless, Ives continues to maintain an "outperform" rating for Apple with a target price of $270.

When questioned about this stance, the analyst pointed to some positive developments, such as Apple receiving tariff relief from the Trump administration.

Earlier, Ives had stated that Apple risks falling behind in artificial intelligence, which could tarnish CEO Tim Cook's legacy. He said that with competitors closing in, Apple must act quickly to secure its position in the next industrial and technological revolution, or risk being left behind.