Apple stock surged to a record high on Tuesday, buoyed by positive iPhone sales data and bullish outlooks from Wall Street analysts. The tech giant’s shares reached an intraday peak of $237.49 before paring gains, closing up 1.1% at $233.85. The rally came as market research firm IDC reported that iPhone shipments rose 3.5% year-over-year to 56 million units in the third quarter, well above the consensus estimate of 50 million.
This strong performance was driven by heavy promotions and marketing activities around Apple’s upcoming AI-powered features, collectively known as Apple Intelligence. Morgan Stanley analyst Erik Woodring noted that the IDC data suggests potentially $2 billion to $4 billion in revenue upside for the quarter. He reiterated his overweight rating on the stock with a price target of $273.
Despite concerns from some analysts about softer demand for the new iPhone 16 lineup, based on lower shipping times, others remain optimistic.
Apple stock surges on strong sales
Evercore ISI listed Apple as a tactical outperform ahead of its earnings report in late October, stating that the company can rally if it merely meets investors’ low expectations.
Tuesday also saw the unveiling of Apple’s first update to the iPad mini in three years. The new tablet, available for preorder, features a processor capable of supporting Apple Intelligence. With its market cap standing at $3.55 trillion, Apple has retained its position as the most valuable publicly traded U.S. company, staying ahead of Nvidia, which closed Monday at a record high with a market cap of $1.3 trillion.
Jim Cramer, a prominent market commentator, maintained his “own it, don’t trade it” stance on Apple stock, suggesting that more upside should be ahead as the AI-driven iPhone upgrade cycle plays out over time, boosting sales. As Apple gears up to report its earnings on Oct. 31, investors will be closely watching for further signs of strength in iPhone sales and the impact of the company’s foray into AI-powered features.
