Apple (AAPL 0.87%) stock has made for a fairly underwhelming investment over the past several months. It's been declining as investors have grown frustrated with its slow rollout of artificial intelligence (AI) features on its iPhones, questioning just how much growth potential the top tech stock may have, given its valuation is already fairly high, with a market cap of around $3.7 trillion.
In six months, the stock has fallen by 2%. But while all eyes may be on AI these days, it's a non-AI catalyst that could have the biggest impact on the tech stock this year.
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A foldable iPhone could be coming this year
While AI may help people do day-to-day tasks more efficiently, Apple's devices don't technically need the latest AI features. With no shortage of chatbots, users could still use an app to ask for AI's assistance in generating emails or creating images. And with iPhone sales looking strong in the company's most recent quarter, customers don't seem overly concerned about a slow AI rollout, to the point of ditching iPhones altogether.
And that's why I think a more important catalyst to watch for may be the launch of a foldable phone, which is expected later this year. According to Erik Woodring, an analyst at Morgan Stanley, foldable iPhones might generate between $40 billion and $60 billion in revenue for the company within the next year and a half. While foldable phones are already available, a foldable iPhone could give Apple customers a huge incentive to upgrade to the latest device, which would likely also be well-equipped to handle any new AI features.
NASDAQ: AAPL
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Is now the time to buy Apple stock?
The launch of a foldable iPhone is an exciting catalyst that could surely boost Apple's top and bottom lines in the near future, and it may give the stock a boost if the rollout goes well and demand looks strong. Apple has historically been one of the safer tech stocks to own in recent years due to its loyal customer base and broad ecosystem of products and services.
If you're looking to hold on to the stock for the long term, now can be a great time to add Apple to your portfolio. It's not a terribly cheap stock to own, as it trades at around 32 times its trailing earnings. However, with a foldable iPhone on the way and the company having a new growth opportunity to tap into, the stock may still be poised for a rally later this year and even greater gains in the long run.
