Apple Inc. (NASDAQ:AAPL) gains traction as investors weigh iPhone demand, its push into smart-home products and an escalating trade-secret dispute with OpenAI.
The stock outperformed its Magnificent 7 stocks in 2026, gaining almost 30%.
Moffett Says Apple Is Late To Smart Homes
MoffettNathanson analyst Craig Moffett said Apple’s smart-home push could eventually become a meaningful growth contributor, but he argued that the company is entering the category later than rivals.
Moffett told CNBC on Tuesday that consumers already use established products such as thermostats, cameras, doorbells and smart lights, giving competitors a head start.
He does not expect smart-home products to become another iPhone-sized business, but said the category could still contribute to growth over time.
MoffettNathanson maintains a Neutral rating on the stock.
iPhone Demand Matters
Moffett said iPhone demand remains central to Apple’s investment case.
He noted that Apple has recently reaccelerated unit shipments, particularly for the more expensive iPhone 18 Pro and Pro Max models.
Moffett said Apple’s biggest competition for a new iPhone is often an older iPhone already in a customer’s hands. That makes the company’s ability to persuade users to upgrade earlier especially important.
He said Apple has performed reasonably well despite higher prices and less generous carrier subsidies.
Bank of America data cited in the interview showed delivery lead times averaging nine and 15 days, below 13 and 24 days a year earlier.
Valuation Creates A Bigger Challenge
Moffett said Apple’s valuation leaves less room for disappointment.
He noted that the stock trades at more than 30 times earnings while its earnings growth remains slower than that of other large technology companies.
Moffett said investors have rewarded AAPL with a higher valuation in recent years because they viewed the stock as a relative safe haven.
“The risk, I think, for Apple at this point” is that investors could eventually assign the stock a lower valuation multiple, Moffett said.
Apple carries a consensus Buy rating, with an average analyst price forecast of $336.19.
On Oct. 12, JPMorgan maintained an Overweight rating and raised its price forecast to $360. Morgan Stanley maintained an Overweight rating on Oct. 1 but lowered its price forecast to $355. Needham maintained a Hold rating the same day.
Apple Wins Faster Discovery In OpenAI Trade-Secret Case
Apple persuaded a federal judge in California to require OpenAI to accelerate the production of certain evidence in its trade-secret lawsuit.
U.S. District Judge Edward J. Davila said there was a valid risk that important forensic evidence on devices used by former Apple engineers could be destroyed.
He pointed to discussions between former employees Chang Liu and Alyssa Peng about wiping Apple-owned devices, Bloomberg reported on Wednesday.
Davila ordered OpenAI to provide forensic images of devices, summaries of certain Apple employee interviews, LINE messages between Liu and Peng, and records describing former Apple employees’ responsibilities at OpenAI.
Liu, Peng and former Apple hardware chief Tang Yew Tan must also sit for early depositions.
Apple sued OpenAI, Liu and Tan in July, alleging a coordinated effort to take information related to upcoming Apple products. OpenAI has argued that the lawsuit lacks merit and is intended to address Apple’s difficulties competing for talent.
The judge did not grant Apple everything it requested. He declined to speed up discovery involving OpenAI research on metal finishes, power management and battery functionality, saying those materials should proceed on the normal schedule.
He also postponed a decision on requests involving the term “Apple Originated Information,” calling the definition too broad in its current form.
AAPL Price Action: Apple shares were up 1.52% at $346.46 at the time of publication on Wednesday. The stock is trading at a new 52-week high, according to Benzinga Pro data.
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