Wedbush analysts believe Apple (NASDAQ:AAPL) has weathered its worst phase after posting better-than-expected earnings for the March quarter. They suggest that Apple's strategy for artificial intelligence (AI) will be crucial for its next growth phase.

The analysts anticipate significant announcements on AI at Apple's Worldwide Developers Conference (WWDC) in June, which they expect to drive the next wave of device sales. They emphasized the importance of Apple meeting street estimates in the June quarter, noting that the remaining two quarters of the year present growth opportunities.

Although Apple's revenue and profit marginally exceeded expectations in the March quarter, declining iPhone sales in China were still a concern. However, Wedbush views the integration of generative AI into the iPhone as a potential "new frontier of growth" for the company's device sales.

Wedbush maintained an outperform rating and a $250 price target for Apple, highlighting the potential of the upcoming iPhone product cycle, pent-up demand, and AI integration over the next 6-9 months. They also emphasize Apple's $110 billion buyback program as an additional source of investor confidence.