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Investors looking beyond Apple Inc. (AAPL) could capitalize on two alternative stocks that may benefit from the tech giant’s halo effect following the announcement of its second-quarter results on Wednesday.

What Happened

CNBC’s “Trading Nation” asked two expert traders for the two top stock picks in Apple’s ecosystem. Matt Maley, chief market strategist at Miller Tabak, picked Qualcomm Inc. (QCOM) as the top stock. Maley said on CNBC that Qualcomm could be attractive to investors after the stock fell about 30% amid worries Apple may be manufacturing its own chips.

The trader added that Qualcomm’s positive earnings were going to give the stock “another leg higher.” On Wednesday, Qualcomm reported better-than-expected results for the second quarter, with revenue surging 52% year-over-year. The chipmaker also forecasted solid growth for handset shipments in 2021. The shares rose more than 5% in extended trading.

Yet Delano Saporu, founder of New Street Advisors, is instead betting on podcast demand with Spotify Technology S.A. (SPOT). Spotify shares fell more than 12% to $257 per share on Wednesday after the company reported first-quarter earnings that missed analyst estimates, while its subscription growth was not as strong as expected.

If Spotify’s stock continues to fall, there will be a great opportunity for investors to get in at around the $240 range, Saporu noted.

Why It Matters

It was reported in December that Apple has started building its own cellular modem chips for future devices amid the tech giant’s focus on self-reliance for device components. The news was seen as a setback for Qualcomm, a huge supplier of chips to Apple.

However, Apple could face heightened competition in the headphone segment after Qualcomm in March released a new range of audio chips designed to connect wireless headphones with devices that run on Alphabet Inc’s (GOOGL) Android operating system.

A market forecast by eMarketer in March predicted that Apple is set to lose its top spot for U.S. podcast listenership to Spotify this year. Unlike Apple, Spotify has been investing significantly in podcasts. It was reported on Tuesday that Spotify launched a feature enabling podcasters to mark subscriber-only episodes, following Apple’s similar talent-attracting move.