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These 2 Stocks May Be The Best Way To Play Apple’s Record Run Higher

These 2 Stocks May Be The Best Way To Play Apple’s Record Run Higher

These 2 Apple suppliers look poised to climb higher as the iPhone maker continues its rise.

Apple (NASDAQ: AAPL) shares have been surging at a blistering pace.

The iPhone maker’s stock is up nearly 148% over the last year, gaining nearly 10% in the last week alone.

But while Apple shares march ever higher, two of its suppliers may be a better way to play its move higher.

Ari Wald, head of technical analysis at Oppenheimer, said this week that while Apple looks good from a fundamental perspective and should continue to benefit from strong technology momentum, the stock has also moved into overbought territory.

“For an alternative, we’d be steering our clients into Apple’s supply chain, semiconductors,” Wald said. “Most notably, one name that stands out is Skyworks Solutions (NASDAQ: SWKS). It gets about 40% to 50% of its revenue from Apple.”

And according to Wald, Skyworks’ chart points to more gains ahead. 

“Recent strength broke Skyworks out of a five-year range, dating back to its peak from 2015,” Wald said. “So we think that marks a resumption of Skyworks’ long-term uptrend and that breakout point is now support and measures towards $180” – 26% higher than the price as of this writing.

Source: TradingView.

Aside from Skyworks Solutions, Strategic Wealth Partners’ Mark Tepper has his eye on another Apple supplier.

“If you’re looking for an Apple alternative, we like some of the supply chain names as well. Qualcomm (NASDAQ: QCOM) is one that we like,” Tepper said. “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.”

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