Apple likely to benefit from 'improving' supply chain, Wedbush says as spending holds up
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Apple (NASDAQ:AAPL) is likely to be one of the main beneficiaries as investment firm Wedbush Securities noted a "clear improvement" in the supply chain in Asia over the past week.
Analyst Dan Ives noted that Apple (AAPL), as well as "other chip players," are likely to be the main beneficiaries of the aforementioned improvements, calling it a "much needed positive heading into [the second half.]"
"While spots around zero Covid are popping up in China, we are seeing a strong production trajectory heading into June for stalwart names such as Apple (good for iPhone 14 ramp) and Tesla (TSLA) which are key barometers for the overall market on this painful hot button supply chain issue which has been a black cloud over the tech/automotive sector the last 6 months," Ives wrote in a note to clients.
Apple (AAPL) shares fell nearly 0.5% to $149.05 in premarket trading on Tuesday.
In addition to an improving supply chain out of Asia, Ives noted that enterprise spending has held up "much better than expected," citing recent earnings reports from Nvidia (NVDA), Palo Alto Networks (PANW) and Zscaler (ZS).
Ives also pointed out that cloud and cyber security spending are both "holding up well" despite fears to the contrary, with further data on the cloud market to come when Salesforce (CRM) reports quarterly results after the close of trading today. 
And while tech stocks have pulled back in recent weeks, the analyst added that the bad news baked into the technology sector is "overdone" and there will continue to be a further separation between the "haves and the have nots," with Apple (AAPL), Microsoft (MSFT) among the former.
On Friday, Apple (AAPL) reclaimed its title as the world's most valuable company, ending the week at a value of $2.42T, overcoming Saudi Aramco's $2.39T.