Goldman Sachs has countered rising bearishness around Apple stock ahead of the company’s fiscal second-quarter report, saying the prevailing concerns misread the firm’s position. The investment bank argues the sell-off in Apple shares does not reflect what it views as the company’s relative strength across product lines and services.
Apple’s shares have fallen on a year-to-date basis while the S&P 500 has posted a 2% gain. Market worries cited in commentary and investor conversations include pressure on smartphone gross margins and the possibility that sharply higher DRAM prices could dent demand for devices.
Michael Ng of Goldman Sachs summed up the bank’s stance directly: "concerns for Apple are overly pessimistic given its much stronger relative position." That view underpins the firm’s forecast for the upcoming quarter.
Goldman projects fiscal second-quarter earnings per share of $2.00, above the consensus Street estimate of $1.93. The bank expects Apple to outperform consensus on iPhone revenue, Mac revenue and on gross margins, and it anticipates that favorable foreign exchange movement and strong Services growth will help lift reported results.
On Services specifically, Goldman forecasts 14% year-on-year growth despite anticipating another slow App Store quarter. The bank cites a mix of supporting factors for Services growth, including iCloud+, AppleCare+, previous price increases to Apple TV+ and resilient advertising results.
Looking beyond the quarter, Goldman sees potential upside from expanding advertising inventory within Apple’s ecosystem, naming both the App Store and Maps as areas that could provide additional revenue lift.
To support its constructive stance, the bank points to recent industry signals: TSMC flagged high-end smartphone outperformance on its most recent earnings call; reports indicate iPhone share gains in China; and there are accounts that Apple has been actively securing mobile DRAM supply while managing pricing to remain competitive.
Goldman also highlighted upcoming company-specific catalysts it believes could boost sentiment, including the Worldwide Developers Conference - where new Siri AI features are expected - and the autumn iPhone launch. The bank described the fall lineup as likely to be "the most innovative ever with the introduction of the iPhone Fold."
The article also included a note on an investment screening product that evaluates AAPL alongside other companies using multiple financial metrics. That section referenced past model winners and returns, citing Super Micro Computer (+185%) and AppLovin (+157%) as historical examples of strong performance identified by the tool.
Bottom line: Goldman Sachs views the market’s Apple concerns as disproportionately negative and models an EPS beat driven by product revenue, Services growth and favorable FX, while flagging several near-term catalysts that could support the stock.