Apple (AAPL) delivered record September-quarter results fueled by iPhone sales and Services revenue, which are expected to accelerate as the tech giant gears up for the holidays.
In a press release, Apple says it generated $102.5 billion in revenue for the quarter ending in September, up 8% year-over-year and beating estimates of $102.24 billion.
The firm says iPhone sales contributed $49 billion, and Services reached $28.8 billion. Meanwhile, earnings per share (EPS) hit a record $1.85 for the September quarter, crushing estimates of $1.65.
Following the report, Wedbush’s Dan Ives believes that AAPL is going to be green as investors look forward to the December quarter. Ives highlights that Apple has made a comeback after having its “back against the wall” months ago.
“Everyone’s focused on December, and that’s very robust in terms of what we’re seeing on iPhone demand, specifically out of China. And then you look at what I believe services, massive double-digit growth. Look, go back to the last six, nine months, the company’s back against the wall. Now you have this number.”
The strategist says Apple’s eventual entry into generative and on-device AI markets could materially re-rate the stock, citing valuation expansion seen across other large-cap tech names.
“And then look, what I believe, everyone’s playing for AI… Apple’s going to get into the AI party. And that, I believe, is worth $75 to $100 a share.”
He says the current moment is a high-conviction phase for long-term holders, citing iPhone strength, international demand and improving sentiment.
“If you’re an investor right now, I think it’s a pound-the-table moment for the stock. The fact that iPhone 17 is holding up so strong and a surprise what I believe is going to be in China in the December quarter, you start to look at numbers. There is a lot more that could go right here than wrong.”
The analyst lays out an upside case for AAPL tied to Apple’s successful AI execution.
“You could have a $350 stock. You could have a $400 stock if they get AI right. If you’re wrong here or there, I think minimal downside.”
APPL ended the Thursday trading session at $271 with a market cap of $4.03 trillion.
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