Apple (NASDAQ:AAPL | AAPL Price Prediction) stock has been a real drag on the Magnificent Seven in the past quarter. For shareholders of the iPhone maker, it hasn’t been the happiest of new years, with shares down close to 9% year to date, or about 14% from all-time highs hit back at the start of December 2025. If you chased stock in the back half over optimism that its AI woes would be solved with a partnership with Alphabet (NASDAQ:GOOGL), you might be in the red.
And while things feel gloomy for Apple on the way down, especially as we approach big tech earnings season, I do think that the latest wipeout could prove more of an opportunity for long-term thinkers, especially as new catalysts look to garner investor and analyst enthusiasm. Of course, it’s no mystery that Apple is hard at work on a foldable phone.
Even if things go smoothly, there’s uncertainty as to whether the phone will be a hit. If the iPhone Air didn’t fly off shelves, there’s no reason to believe that a foldable could, right? And given foldables are a rather niche part of the smartphone scene, it seems like a better idea to temper expectations rather than expect the new form factor to kick off a massive supercycle.
It’s been tough to time a supercycle in Apple
Undoubtedly, over the years, it’s been as hard to time an iPhone supercycle as it’s been to call an economic recession. Many Apple analysts have struck out when calling for a supercycle. And while it feels like none will ever happen at all, I still think investors are punishing Apple in a year that’s full of upside drivers.
Whether we’re talking about the rumored foldable iPhone, the Spring Siri update, the rumored Apple AI pin (or desktop robot), strength in China, services strength, or the ambitious chatbot update due later in the year, there’s certainly a lot of potential positive catalysts that could propel Apple shares out of their current correction.
When it comes to AI updates, I think the path ahead looks quite promising. Some big AI features are due in Spring, and a bigger update later in the year could see Apple’s AI chatbot (codenamed Campos) compete directly with the likes of ChatGPT or Claude. Given Apple’s Gemini partnership and personalized context potential, I think many may be underestimating Apple as it undergoes what appears to be a massive catch-up year in AI.
Goldman Sachs analyst thinks the dip in Apple stock is buyable
With Goldman Sachs (NYSE:GS) analyst Michael Ng recently reaffirming its buy rating and $320 per-share price target (suggesting close to 30% in upside from here), with a focus on strong iPhone revenue growth and potential for a big rebound in China, the latest correction certainly seems like a tempting one to do some buying.
With a strong product slate up ahead, perhaps Mr. Ng is right to have such a bullish view of Apple. And while he’s bullish, his target isn’t the highest on Wall Street. Of course, that title goes to Dan Ives, who’s used stronger language (think supercycle) to describe the road ahead for the Cupertino giant as it looks to hit his target of $350 per share.
Personally, I think Michael Ng’s mention of strength in China is a top reason to give Apple the benefit of the doubt, even as others sell in what appears to be a potential market mispricing. Perhaps the foldable iPhone isn’t just a niche device, like the iPhone Air, but the start of a serious volume driver that might nudge the iPhone back to mid-teens percentage sales growth.
Add the AI updates into the equation, as well as the potential for services growth (the new Creator Studio subscription for creatives looks compelling), and seems strange to see Apple acting as one of the biggest laggards in the Mag Seven so far this year. A bad January for Apple certainly doesn’t mean the rest of 2026 will be met with pain. Personally, I’m with Ng when it comes to Apple. There are just too many unrecognized catalysts.
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