08:35 AM EDT, 07/09/2025 (MT Newswires) -- Apple ( AAPL ) risks falling behind in the AI race and acquiring Perplexity AI could be the catalyst needed for long-term success in the "consumer AI revolution race," Wedbush Securities said in a note Wednesday.

The firm said Apple ( AAPL ) has largely remained on the sidelines with other tech companies including Microsoft ( MSFT ) , Alphabet (GOOGL, GOOG), Meta Platforms ( META ) , Oracle (ORCL), and Amazon ( AMZN ) building AI capabilities.

Apple's ( AAPL ) internal efforts to build Apple Intelligence have failed to meet developer and investor expectations, the note said.

The firm said acquiring Perplexity AI, an emerging search and conversational platform valued at roughly $14 billion, would provide the technology Apple ( AAPL ) needs to transform Siri into a next-generation AI interface.

If the iPhone maker buys Perplexity AI, it "would be a game changer on the AI front and rival ChatGPT given the scale and scope of Apple's ( AAPL ) ecosystem," Wedbush analysts said.

Wedbush maintained its outperform rating on Apple ( AAPL ) with a $270 price target.