Apple’s Stock Soars Beyond $250, Nearing the Historic $4 Trillion Milestone

Apple’s stock reached a new all-time high of $251.04 on December 16, 2024. Investor optimism around the company’s AI initiatives and robust fundamentals are driving the shares towards the historic $4 trillion market valuation milestone. To achieve this unprecedented market cap, the tech giant needs to reach $268.26 per share.

The stock surge signifies a remarkable 50% recovery from April lows around $165. This was when Apple’s AI service, “Apple Intelligence”, initially received lukewarm reviews. Despite concerns about flagging iPhone sales, which account for roughly half the company’s revenue, Wall Street analysts remain bullish on the company’s prospects.

JPMorgan’s analysts dismiss AI concerns. Samik Chatterjee projects iPhone sales will surge from 230 million units in the current fiscal year to 251 million phones in 2025. This is driven by the anticipated iPhone 17 launch. Even without an AI revenue boost, analysts point to Apple’s resilient services business – including Apple Music, TV, and Pay – as a strong foundation for continued growth.

Apple’s 35% gain in 2024 has outpaced the S&P 500’s 28% rise. This has helped the company reclaim its position as the world’s most valuable corporation. The rally comes despite Warren Buffett’s Berkshire Hathaway reducing its Apple stake by more than two-thirds earlier this year. However, the company remains Berkshire’s largest public holding at $74 billion.

Source: Yahoo Finance