By Wedbush Securities’ senior analyst Dan Ives recommends sticking with Apple (NASDAQ: AAPL) ahead of its Q1 earnings on January 29th.
The tech titan is broadly expected to post a nearly 11% increase in revenue to $138.47 billion – its largest year-on-year growth since 2022 – on the back of strong iPhone 17 demand.
AAPL’s earnings are seen printing at a record $2.67 on a per-share basis as well in the first quarter.
Ahead of the release, Apple stock is trading at about twice its price in April of 2025.
Why Apple stock is worth buying ahead of Q1 earnings
Dan Ives believes Apple Inc will “dive into the deep end of the pool” with its artificial intelligence (AI) strategic roadmap in 2026.
The iPhone maker is expected to announce a formal partnership with Alphabet to integrate Gemini directly into its ecosystem this year, which Ives believes will prove a game-changer for its AI roadmap
Additionally, a major conversational overhaul of Siri codenamed “Campos” may roll-out in spring, potentially turning the assistant into a sophisticated chatbot powered by high-end LLMs.
This, the Wedbush analyst wrote, could further boost demand for the iPhone and lift AAPL stock price over the next 12 months.
What else could drive AAPL shares higher in 2026
Ives remains bullish on Apple shares ahead of Q1 earnings, also because the unit demand for iPhone is being underestimated – particularly in China, where sales have seen a resurgence.
The multinational may also launch a foldable iPhone later this year to boost average selling prices (ASPs), he told clients in a research note today.
According to the Wedbush Securities analyst, despite rumors of a transition, Tim Cook will remain the chief executive through at least the end of 2027 to navigate this critical AI transition.
All in all, he believes AAPL could climb to $350 by the end of 2026 – indicating potential upside of well over 35% from current levels.
Where options data suggests Apple Inc is headed next
AAPL shares remain attractive as an AI play also because they’re trading at a more “compelling” price-to-earnings (P/E) multiple compared to some of the pure-play names like Nvidia.
At roughly 30x forward earnings, it’s over 30% cheaper to own than NVDA in 2026.
Despite the recent pullback, the iPhone maker remains handily above its 200-day MA, indicating the broader uptrend remains intact.
What’s also worth mentioning is that options traders believe Apple will push nearly “3.5%” higher to $265 after the earnings release on January 29.
In fact, longer-term derivatives contracts expiring mid-April suggest the Nasdaq-listed firm could be trading at nearly $280 within the next three months, according to data from Barchart.
And Wall Street seem to agree with the options traders’ optimism on Apple Inc as well, given the consensus rating on the Cupertino-headquartered company sits at “moderate buy” at the time of writing.
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