Another Apple bull is boosting its outlook.
Cowen analysts bumped their price target to $530 on Tuesday, a street high, just a day after Morgan Stanley increased its own. Apple shares hit a record above $515 on Monday, further stretching the company above its $2 trillion market cap.
Ari Wald, head of technical analysis at Oppenheimer, is also bullish on Apple. He said the company rates well fundamentally and should continue to benefit from strong technology momentum. Its nearly 70% rally year to date, however, has pushed it into overbought territory, said Wald.
"For an alternative, we'd be steering our clients into Apple's supply chain, semiconductors. Most notably one name that stands out is Skyworks Solutions. It gets about 40% to 50% of its revenue from Apple," Wald told CNBC's "Trading Nation" on Monday.
Its recent moves have also set Skyworks up for a technical push higher, said Wald.
"Recent strength broke Skyworks out of a five-year range, dating back to its peak from 2015. So we think that marks a resumption of Skyworks' long-term uptrend and that breakout point is now support and measures towards $180," he said.
Shares in Skyworks were trading Tuesday at close to $142. The stock is up 17% this year.
Mark Tepper, president of Strategic Wealth Partners, is more cautious than Wald on Apple after its outperformance.
"We own the stock, but we have been trimming as it goes higher. The stock has tripled over the last 18 months and it's not because they're growing earnings, there's been zero earnings growth over that time frame. It's all off multiple expansion," Tepper said during the same "Trading Nation" segment.
The stock traded at less than 16 times forward earnings in March. It now trades at more than 32 times. Tepper said it looks to be valued as a software company even though the majority of its revenue is generated from lower-margin hardware sales.
"Now if you're looking for an Apple alternative, we like some of the supply chain names as well. Qualcomm is one that we like. It's trading at a 25% discount to the rest of the semiconductors, and it is a pure play on 5G. They're in Apple phones, they're in Samsung, they're in Huawei, so Qualcomm is the best pure play on the 5G rollout that's going to be coming up very shortly," said Tepper.
Qualcomm shares are up 30% this year. The stock was down less than 1% in afternoon trading Tuesday.
Disclosure: Strategic Wealth Partners holds AAPL and QCOM.