Apple Seen Becoming the First Company to Hit $4 Trillion Market Cap - Wedbush

Apple's market cap could hit $4 trillion within the next 12 to 18 months, becoming the first publicly traded U.S. company to achieve this milestone, according to Wedbush analyst Dan Ives.

Apple's strong performance has been driven by robust demand for its iPhone 12 series, which is expected to continue in the coming quarters as more people upgrade to 5G-compatible devices.

In a research note to clients, Ives wrote that Apple's "iPhone supercycle" is likely to extend into the second half of 2021, with iPhone sales expected to grow by 15% to 20% in the year ahead. This would represent a significant increase from the previous year's growth rate of 5% and would mark the strongest iPhone sales growth in five years.

In addition to the iPhone, Ives also cited Apple's growing services business as a major driver of growth. Apple's services revenue grew by 27% in the first quarter of 2021, to $16.9 billion, and accounted for 21% of the company's total revenue.

Ives believes that Apple's services business is poised for continued growth in the coming years, as more people subscribe to Apple Music, Apple TV+, and other services. He predicts that Apple's services revenue could grow to $100 billion by 2025, up from $53.8 billion in 2020.

Overall, Ives is very bullish on Apple's prospects and believes that the company is well-positioned to continue its strong performance in the years to come. He has a price target of $160 on Apple shares, which implies a market cap of $4 trillion.

If Apple does reach a market cap of $4 trillion, it would be a major milestone for the company and would further cement its position as one of the world's most valuable companies.