Apple: Here's why Wedbush's Dan Ives is bullish on the stock

Here web wishes. Dan Ives joins us here at Post 9, keeps an outperform target at 250. Happy Friday, Dan, good to have you. Overall thoughts on the on China, I guess let’s start with that backwards against the wall, China came in much less bad, I’ll call it than anyone feared and it’s what we saw. I mean we started to see a turn around in March, I think going into April. Now Grant, these are not phenomenal numbers, but now you’re on the trajectory see growth again in China. I think it just comes down to when you bet against Cook and Cupertino, you’ve been proven wrong and again and again this is another quarter I think they came through. You think we get plus signs in China this year. I think in September quarter you start to get growth in China. And this leads to what I believe not just from an AI perspective next 6-9 months it’s going to mean AI driven super cycle with iPhone 16, you get China 230 million iPhones, you get 70% of them have not upgraded in the last three years. But the it’s limited growth, isn’t it Dan? Overall, yeah, I think for for this quarter of course limited growth but sorry I think when you look at next six, 912 months that renaissance of growth is come back to Cupertino combined with the AI story. So to me, when you look out, this is actually a time I believe it’s just the beginning of the next phase of the growth story for Apple. By the most important thing in this quarter, just given all the doomsday about China being down 12/15/18 percent, it’s not you’re actually starting to see a turn and that’s why I cook 10% politician, 90% CEO. How important is June 10th? How important is that announcement going to be? Put it in perspective in terms of other highly anticipated moments from Apple? Yeah, it’s the Super Bowl for for Apple. I mean if I look back the last four or five years, it’s probably the most important moment because the in is mean, you’ve talked on the show at this is really AI coming to Cupertino. It’s showing not just on what I believe will be on the iPhone 16 terms, the LLM and the exclusive features, but it’s about the developers services that’s the Rocket Gibraltar for Apple. And I believe this is going to be, it’s going to be historical moment not just for Apple but showing now that AI is coming to the consumer being led by those 2.2 billion iOS devices. You know Dan the the CapEx numbers from the other mega cap tech players are just mind boggling. We don’t really know though exactly what Apple spends, do we when it comes specifically to sort of AI generative AI, do we have a sense as to what they’re doing? I mean we believe it’s going to be up 40 to 50% in terms of AI CapEx this year because I think Apple recognized and Cooks talked about I mean behind you know clearly competitors you saw obviously the EV initiative that they ripped the Band-Aid off. Now it’s all in deep end of the pool on AI and that’s the right strategy because we believe when this is all said and done it could add $4050 per share of the story in terms of services that could be an incremental 8 to 10 billion and what will drive the AI driven super cycle with iPhone 16, you’ll get that China story. This is just the start of that turn around. I think it’s going to be a Brunson like moment for Apple and for Cupertino as we start to tailor that just for David, was that for me was that a new one and you’re and you’re that’s when I just unveiled right here. Yeah you mentioned the Band-Aid on EVs. So people are saying the same thing about Tesla in some ways that the E VS going into a bit of a dark age, it’s robotics and AI that are ascendant and that that company too will change as a result. Hey look, it was a dark day as we talked about from Musk and and Tesla by. Do you think turning it around in terms of what we’ve seen with the sub 30K vehicle we believe gets launched next year, but it is all about autonomous. When you look out the golden goose for Tesla is autonomous and FSD but this sub 30K vehicle was so important that they’re going to release into next year. I think for the first time as we talked about probably in a year and a half you feel like there is a pilot on the plane and that’s must. So of the two you favor them equally. Well right Now if if I’m looking at it, I think Apple’s the one you favor over Tesla just because the catalyst in terms of Cook, WWDCAI coming this I this AI driven upgrade cycle into iPhone 16. I think it’s a pop sort of like popcorn movement for Apple as we will. You didn’t even mention the.