Apple has struggled relative to its tech peers in 2024, but BofA sees value in the tech giant. Services have begun to take a larger and larger share of revenues.

Bill, I’ll start with you. What do you make of this move? Yeah, Apple. I mean, it’s been the unloved one to start the year and when things fall unloved. And that’s what I like. I mean, that’s that’s why I think it really reinvigorate things here. You have Taiwan Semiconductor bringing the tailwind to Apple. We’re talking about a smartphone cycle better than better than expected.

You had bank of America in their upgrade. Talk about the iPhone cycle being better than expected. But really, I think one thing we’ve been talking about is services and how services are going to become a bigger piece and a bigger piece of that pie. And that was really the core of, I think, Bank of America’s note here is how services are going to really drive their growth.

I mean, the ecosystem that Apple’s built is just is almost unmatched anywhere else. I mean, they’re calling for 225 target. And that’s the interesting thing here when you’re looking at Apple could still break out in video. You know Josh is 70 are a site things can stay overbought for a little while but video is breaking out. Apple will now break out When these things break out and these things are trending, they’re going to drive the market.

And I think Apple is going to really potentially be you know, you have one thing, take a lead and the next thing take the lead is chips leading right now as Apple gets out above 200, it’s then going to lead. It is then going to break out. AMD is breaking out right now. So these are the leaders in there.

And I’m not saying everybody needs to start chasing everything. Apple is probably the one right now where there’s more upside given that it hasn’t broken out, but things can stay overbought for a while and continue to run here for a bit. And that’s what we expect. For those that haven’t seen the note. You know, one of the points here that you’re saying higher growth in services as installed base gets better monetize.

And then also I thought that this was really interesting about the belief that there’s a stronger multiyear iPhone upgrade cycle driven by the need for the latest hardware to enable generative AI features to be introduced and 24 and 25 And here you’ve been sort of nodding your head as Bill was talking, so jump on in. I think everything Bill said makes sense