Prediction: Apple Will Soar After Oct. 28

Apple (NASDAQ:AAPL) stock has been a winner for investors over the years, but in the earliest days of the artificial intelligence (AI) boom, it hasn't been the most sought-after investment. The company took its time adding AI features to its devices, so it wasn't seen as a top AI stock.

But this year, as investors began to worry about companies that rely heavily on AI for growth, they returned to Apple. In fact, with a 26% gain so far this year, Apple is the best performer among the "Magnificent Seven" tech stocks that have pushed the S&P 500 higher in recent years.

Now, my prediction is that this solid performance isn't over, and Apple will soar after a key moment on Oct. 28. Let's find out more.

Image source: The Motley Fool.

Apple's approach to AI

First, let's take a step back and consider Apple's recent past. As mentioned, while other tech players heavily developed and used AI in the earlier stages of the boom, Apple took a slower approach. The company first launched its AI platform, Apple Intelligence, two years ago and progressively rolled out features across the iPhone and its other devices.

Investors, eager to get in on AI in a big way, opted for other tech companies such as Nvidia, an AI chip leader, and Alphabet, a user and developer of AI products and services. Though Apple stock has advanced in recent years, it's lagged many other tech players.

AAPL data by YCharts

Apple also faced some headwinds amid concerns about import tariffs on its products as it manufactures heavily abroad. (The company has since negotiated with the U.S. government, winning certain exemptions as it's pledged to increase the manufacturing of certain elements -- like the glass cover for the iPhone -- in the U.S.)

Today, however, investors' attention has shifted. Many are concerned that companies heavily dependent on AI may suffer amid any potential slowdown, and so they've looked to get in on a broader range of tech companies. Enter Apple. The company offers a solid moat, or competitive advantage, that may keep revenue marching higher over time -- this is its brand strength -- along with a fantastic earnings track record.

John Ternus becomes Apple CEO

On top of this, Apple may be entering a new phase of growth with the appointment of new chief John Ternus. Tim Cook, after 15 years at the helm, became executive chairman of the board of directors and handed over the CEO role on Sept. 1. Cook's tenure was a successful one, with the launch of new products such as the Apple Watch and as he helped revenue and market value to climb.

AAPL Revenue (Annual) data by YCharts

Right now, though, the new leadership may spark some excitement among investors, considering Ternus' strengths in product development. Prior to taking over leadership, he was Apple's senior vice president of hardware engineering.

And this brings me to the subject of Oct. 28. Apple is planning a product launch event, and analysts predict the company will release new Macs, including Apple's first-ever touchscreen laptop.

Ternus already announced another big product, Apple's first foldable iPhone, just weeks ago. All of this signals that an important phase of new product development and release may be in the cards for Apple in the quarters and years to come. Investors look to Apple for innovation, and as I mentioned earlier, Apple's brand strength is its competitive advantage. So any new products that may win customer loyalty might be key to future growth.

Investors might like this combination of fresh growth potential along with the company's well-established and reliable revenue streams.

It's true that Apple isn't the cheapest of stocks right now. It trades at 35x forward earnings estimates, while most of the "Magnificent Seven" players trade between 23x and 31x forward earnings estimates. This may prompt some investors to think twice before rushing into the stock.

That said, I expect optimism to outweigh hesitation, and that's why my prediction is Apple stock will soar after Oct. 28.

Adria Cimino has positions in Amazon and Tesla. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla. The Motley Fool has a disclosure policy.