Apple Inc. (NASDAQ: AAPL) has witnessed a recent positive shift in its stock price, fueled by growing optimism regarding the iPhone 16 and its advanced AI capabilities. The tech giant is poised for a potentially record-breaking sales cycle, driven by consumer interest in the new AI features embedded in the latest iPhone models.
According to Daniel Ives, an analyst at Wedbush, the upcoming holiday season could see a surge in iPhone 16 upgrades, propelling Apple’s market valuation toward the $4 trillion mark by early 2025. This bullish sentiment is echoed by analysts from both Wedbush and J.P. Morgan, who have maintained high price targets for the company.
Why Apple’s Stock Has Been on a Rally Recently
The anticipation surrounding Apple’s market cap reaching $4 trillion is largely attributed to the innovative AI features in the iPhone 16 and iPhone 15 Pro. These features, such as Visual Intelligence and Image Playground, are enticing consumers to consider upgrades, potentially leading to unprecedented sales figures in 2025.
For Apple to achieve this market cap milestone, its stock needs to close at or above $264.623. Currently, at the time of writing, the stock is priced at $255.43, reflecting a 0.37% increase over the day. Analysts like Samik Chatterjee from J.P. Morgan continue to support a positive outlook, assigning an Overweight rating and setting a price target of $265.
Apple’s stock has demonstrated a notable upward trend in recent weeks. After closing at $254.49 previously, the stock opened at $254.77 and reached a day high of $255.645, which also marks its 52-week high.
Despite a slight dip to a current price of $254.0201 as of December 23, 2024, the stock has shown considerable growth from $232.87 on November 25, 2024, to $254.49 by December 20, 2024.
Apple Stock Brief
Apple’s financial health remains robust, with a market cap of $3.84 trillion and strong earnings indicators. The company boasts a trailing P/E ratio of 41.78 and a forward P/E ratio of 30.57, reflecting expectations of continued profitability.
Analysts recommend buying Apple stock, with a recommendation mean of 1.89. The company’s target prices vary, with a high of $300.00 and a low of $184.00, while the median target price stands at $250.00.
Disclaimer: The author does not hold or have a position in any securities discussed in the article.
About the author
Tim Fries is the cofounder of The Tokenist. He has a B. Sc. in Mechanical Engineering from the University of Michigan, and an MBA from the University of Chicago Booth School of Business. Tim served as a Senior Associate on the investment team at RW Baird’s US Private Equity division, and is also the co-founder of Protective Technologies Capital, an investment firm specializing in sensing, protection and control solutions.
