$Apple Inc(AAPL.US)$ is trading near all-time highs after rallying nearly 14% over the last month.
It is a result of iPhone strength and services growth, Wedbush Securities analyst Dan Ives said Friday on CNBC's "Squawk Box."
This is the strongest product cycle Apple has had in the last decade, Ives said: "this is a true supercycle."
Ives told CNBC he believes the street is underestimating the growth of Apple. Services are a big part of that growth, he said A year ago, services were worth $200 billion to $300 billion, but today, services are worth about $1.3 trillion, he added.
Ives has an Outperform rating and a $185 price target on Apple.
Related Link: Apple Shares Hit Record High: What The Street Is Saying
The iPhone supercycle combined with the company's services growth is the "one-two punch" for Apple, Ives said, adding that he expects another bullish quarter ahead.
Apple is scheduled to report its quarterly financial results July 27.
AAPL Price Action: Apple has traded as high as $150 and as low as $89.14 over a 52-week period.
At last check Friday, the stock was down 0.54% at $147.68.
Photo: Courtesy of Apple.