Wedbush analyst Daniel Ives says his channel checks over the last week around iPhone 11 units heading into the March quarter "look robust." When coupled with "jaw dropping" AirPods momentum, Apple (AAPL) should post "clear upside" in the upcoming December quarter with "strong" March guidance on January 28. Many investors are asking if all the good news is baked into Apple shares after the recent rally, Ives tells investors in a research note. "The answer from our vantage point is a resounding NO," he says.

The analyst believes Apple is only in the first part of a "massive upgrade opportunity," leading to a transformational 5G "super cycle" with 200M to 220M iPhone units "now the new line in sand for demand" based on his recent Asia supply chain checks.

Coupling this dynamic with a "metamorphosis-like valuation re-rating" by the Street around the company's $50B-plus annual services revenue stream can bring the stock to a "bull case" $400 valuation by year-end, contends Ives. Looking out further, the analyst believes that by the end of 2021 Apple has potential to be the first $2 trillion valuation given the 5G tailwinds and services momentum potential over the coming years. Ives maintains an Outperform rating on Apple with a $350 price target. He continues to view the company as the best 5G play into the next year.