Is It Too Late to Buy Apple Stock?

1 hour ago 5

Daniel Sparks, The Motley Fool

Sun, May 10, 2026 astatine 11:02 AM CDT 5 min read

For overmuch of 2026, Apple (NASDAQ: AAPL) banal looked similar a laggard. A drawdown earlier successful the twelvemonth had shares down by mid-single digits astatine 1 constituent successful April. But sentiment has flipped rapidly pursuing the iPhone maker's precocious posted grounds fiscal second-quarter results, which person helped the banal rally implicit the past month, putting shares astatine an all-time precocious connected Friday.

But has the rally already gone excessively far?

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I don't deliberation so. Below are a fewer reasons the banal could inactive person country to run.

Strong merchandise momentum

Apple's fiscal second-quarter results, posted connected April 30, showed however rapidly the company's communicative has shifted. Total gross roseate 17% twelvemonth implicit twelvemonth to $111.2 cardinal -- the company's champion March 4th connected grounds -- with double-digit maturation crossed each geographic conception and maturation crossed each merchandise category. iPhone gross grew 22% to astir $57 cardinal contempt proviso constraints. Cook described the iPhone 17 lineup arsenic "the astir fashionable lineup successful our history" connected the net call.

But Apple's beardown maturation was broad-based. Services gross deed an all-time precocious of astir $31 billion, up astir 16%. And income successful its important Greater China marketplace jumped 28% to $20.5 billion. Further, Apple's gross borderline climbed from 47.1% successful the year-ago 4th to 49.3%, helping propulsion net per stock up 22% -- a complaint that exceeded Apple's gross maturation rate, highlighting the company's operating leverage.

And the trajectory looks intact. Management guided for gross maturation of 14% to 17% successful the existent 4th -- a gait that would people a 3rd consecutive 4th of double-digit top-line growth, aft respective years erstwhile Apple's maturation had stalled. Sure, the institution continues to look proviso constraints related to immoderate spot parts. But that besides means investors tin remainder assured that request for Apple's products is intelligibly strong.

A caller epoch for Apple

The different large displacement is Apple's posture connected artificial quality (AI). After lagging connected AI features for overmuch of 2025, the institution struck a multi-year woody successful January with Alphabet's Google to usage a Gemini models and unreality exertion to powerfulness the long-promised personalized Siri. And Apple is present saying that its revamped adjunct is expected to rotation retired aboriginal this year.

A revitalized, AI-infused Siri could people the opening of much almighty AI integrations for Apple and beryllium to beryllium a large tailwind.

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