Apple’s (AAPL) Outlook Is Positive, Goldman Executive Says

Apple (AAPL) has multiple, significant, positive catalysts, Goldman Sachs Managing Director Sung Cho told CNBC recently. He noted that AAPL stock is his largest holding in the tech sector.

Cho is also upbeat on the tech sector in general.

A wide view of an Apple store, showing the range of products the company offers.

Why Cho Is Bullish on AAPL

Apple has meaningful pricing power, especially in the U.S., the managing director said. The market is underestimating the tech giant’s pricing power, he believes.

Additionally, the company has a significant amount of “flexibility in its supply chain,” along with a powerful balance sheet, Cho stated.

Finally, as a result of the AI Revolution, Apple’s App Store sales will get a boost as a meaningful number of AI-powered apps enter the store, Cho explained.

“Although Apple’s outlook is highly negative in the near term, there are things it can do to respond” to the situation, Cho said.

Tech Is Well-Positioned, Cho Says

Tech stocks have greater pricing power, stronger “competitive moats” and “cleaner balance sheets” than their counterparts in other sectors, Cho said.

Moreover, while the valuation of tech at its peak was 30% higher than that of the S&P 500, that disparity has dropped to 7% now, he reported.

While we acknowledge the potential of AAPL, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than AAPL but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.