Apple, the biggest U.S. company by market capitalization, has the potential to top a $2 trillion valuation by the end of next year, Wedbush said.
"We believe by the end of 2021 Apple has potential to be the first $2 trillion valuation given the 5G tailwinds and services momentum potential over the coming years," Wedbush's tech analyst Dan Ives said in a note on Monday.
Ives is one of the biggest Apple bulls on Wall Street with a 12-month forecast of $350 on the stock. Ives said he sees the shares reaching $400 by year-end in his so-called bull case, a more than 30% gain from Monday's close of $316.96.
Shares of Apple have climbed another 8% in the new year after surging 86% in 2019, pushing its market cap to a record $1.389 trillion.
Ives said 2019 was just the beginning phase of a "transformational 5G super cycle," while the demand for iPhone 11 has been stronger than expected. The longtime tech analyst also predicted Apple's services business to reach $500 billion to $650 billion in sales, becoming a key revenue stream for the tech giant.
Separately, UBS raised its price target on Apple to $355 from $280 on Tuesday, citing "more iPhone optimism." The new target makes UBS the second biggest Apple bull, only next to D.A. Davidson who hiked its price target to $375 Monday, according to FactSet.
Based on UBS' latest smartphone survey data, more than 20% respondents cited 5G as a positive factor and iPhone purchase intent is also improving across different regions. The bank now sees Apple's iPhone sales to hit 196 million in its fiscal year 2020, a 5% year-over-year increase.
"IPhones should see growth in F20 as replacement cycles stabilize and China compares get easier," UBS analyst Timothy Arcuri said in note. "5G technology should drive some upgrades in F21 and beyond."