Apple Inc. is nearing its all-time high in 2026 as investors turn their attention to the company’s Worldwide Developers Conference (WWDC), where new developments in artificial intelligence are expected to take center stage.
Despite trading at a premium valuation, some investors believe Apple’s growth story has regained momentum.
Daniel Sparks Says Investor Sentiment Has Shifted
Daniel Sparks, a five-star investor ranked among the top 1% of stock professionals tracked by TipRanks and a writer for The Motley Fool, said Apple’s outlook has improved after a period when the stock lagged the broader market.
“The stock spent much of 2025 lagging the market while investors waited for a reason to get excited again. But that story has changed,” Sparks said.
Strong Financial Performance Supports Optimism
Sparks pointed to Apple’s latest quarterly results as evidence that the business remains strong.
According to him:
- Revenue reached $111.2 billion, marking Apple’s best March quarter on record.
- Revenue grew 17% year-on-year.
- Earnings per share rose 22% to $2.01.
He also highlighted Apple’s ability to generate substantial cash.
“This is a company growing revenue at a double-digit clip, generating roughly $100 billion in annual free cash flow, and returning enormous sums to shareholders through buybacks and a dividend,” Sparks said.
Installed Device Base Remains a Key Strength
Apple’s ecosystem continues to be one of its biggest advantages.
Sparks noted that the company has more than 2.5 billion active devices, providing a large installed base that can support additional revenue streams.
AI Expectations Surround WWDC
Investors are closely watching this week’s WWDC for updates on Apple’s artificial intelligence strategy.
According to Sparks, reports suggest Apple could introduce a customized version of Alphabet’s Gemini, potentially making Siri more competitive with modern AI chatbots.
AI-related announcements are widely expected to be one of the key themes of the event.
Rumoured iPhone Ultra Could Be Another Catalyst
Sparks also pointed to speculation surrounding a possible launch of the iPhone Ultra later this year.
He believes upcoming product launches and AI initiatives could help sustain the stock’s momentum.
“Looming catalysts could keep the momentum going. For long-term investors, shares could still be worth buying here,” he said.
Apple currently trades at a price-to-earnings multiple of around 37 times, above the broader market and higher than levels seen during much of 2025.
Even so, Wall Street remains broadly positive on the stock.
Apple carries a Moderate Buy consensus rating among analysts, with an average 12-month price target of $320.83.
TL;DR
Top investor Daniel Sparks believes Apple’s growth story has improved ahead of WWDC. He cited strong earnings, a large installed device base, potential AI announcements and the possibility of an iPhone Ultra launch as reasons long-term investors could still consider the stock.
AI Summary
- Apple is approaching record highs ahead of WWDC.
- Investor Daniel Sparks says “the story has changed” for the stock.
- He highlighted 17% revenue growth and strong cash generation.
- AI announcements and a possible iPhone Ultra launch are seen as catalysts.
- Wall Street currently has a Moderate Buy rating on Apple.
