Apple Stock Surges Nearly 4% to Record High
Strong Sales in US and China... Wall Street Projects $315 per Share
Cautious Outlook Amid Delays in AI Features for iPhone
Apple's new product, the iPhone 17, has gained significant popularity in major markets such as the United States and China, pushing Apple's stock price to an all-time high on October 20 (local time). Although Apple has been considered a latecomer in the artificial intelligence (AI) market and its stock performance has lagged behind other major tech stocks, strong sales of the iPhone 17 are fueling optimism for further gains.
On this day, Apple's stock closed at $262.24 per share on the New York Stock Exchange, up 3.94% from the previous trading session, breaking its all-time record.
This surpassed the previous high of $259.02 set in December last year. During intraday trading, the stock climbed as high as $264.38, setting a new 52-week high.
Based on the closing price, Apple's market capitalization was calculated at $3.8917 trillion, bringing it to the brink of joining the $4 trillion market cap club, following Nvidia and Microsoft.
The strong performance of Apple's stock is attributed to robust sales of the iPhone 17. According to market research firm Counterpoint Research, the iPhone 17 series, released last month, sold 14% more units in the United States and China within just 10 days of launch compared to its predecessor, the iPhone 16.
The response has been especially enthusiastic in the Chinese market. According to the South China Morning Post (SCMP), Apple Chief Executive Officer Tim Cook visited China last week to attend the iPhone 17 launch event, where the product sold out within minutes of going on sale.
Buoyed by the iPhone 17 sales frenzy, investment bank Loop Capital upgraded its investment rating on Apple from "hold" to "buy" and sharply raised its target price from $226 to $315. Loop Capital analyst Ananda Baruah commented that the strong sales of the iPhone 17 mean "Apple is at the starting point of a long-awaited new iPhone product cycle," adding, "This suggests that the increase in iPhone shipments will continue through 2027."
Apple's stock price has fluctuated throughout the year. Amid concerns over escalating U.S.-China trade tensions, the stock fell to $172.42 per share in April and took some time to recover, only turning positive for the year in late September.
However, some on Wall Street remain cautious. The delay in the introduction of AI features, which had generated much anticipation at the time of the iPhone 17 launch, has led to disappointment among some investors, raising questions about the sustainability of the stock's upward momentum.
Jefferies analyst Edison Lee stated that "the sales momentum of the iPhone 17 is gradually weakening," and issued a "sell" rating on Apple.
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