Apple Inc. (NASDAQ:AAPL) made headlines on Wall Street after its shares reached a new all-time high, fueled by upbeat sentiment on future product demand that prompted several analysts to raise their outlook on the stock.
Apple’s shares ended the session up more than 4%, closing at a record $264.38. This rally brought the company within striking distance of a $4 trillion market capitalization, trailing only NVIDIA Corporation (NASDAQ:NVDA) and Microsoft Corporation (NASDAQ:MSFT).
Despite the milestone, Apple remains one of the weakest performers among the “Magnificent Seven” stocks this year — ahead only of Amazon.com, Inc. (NASDAQ:AMZN). Its stock is up 4.72% year-to-date, compared with a 36% gain for Nvidia.
The surge in Apple shares came on a day when broader markets were lifted by growing optimism around a possible resolution to the U.S. government shutdown, now in its twentieth day. National Economic Council Director Kevin Hassett told CNBC that “it will probably end this week.”
Analysts at Loop Capital upgraded Apple from “hold” to “buy,” highlighting strengthening iPhone demand. They wrote, “we are now in the early stages of the company’s long-anticipated adoption cycle, which suggests continued expansion in iPhone shipments through 2027.”
A weekend analysis by Counterpoint Research showed iPhone 17 series sales were 14% higher than iPhone 16 during the first 10 days of launch in the U.S. and China, Apple’s two largest markets. Loop analysts also raised their price target to $315, implying around 25% upside from Friday’s close.
Thanks to the strong reception of its flagship device, analysts expect Apple’s smartphone revenue to climb 4% this fiscal year to $209.3 billion, according to Visible Alpha.
Other firms followed suit. Evercore ISI added the stock to its portfolio with an overweight rating, noting that “our positive bias is based on iPhone data suggesting this could be a stronger-than-average refresh, as lead times for the entry-level iPhone 17 are higher than levels seen in October last year.”
Melius Research added that “Apple has decided to silence its critics,” pointing to improving momentum in China and the strength of new models.
Still, consensus estimates compiled by Bloomberg L.P. suggest the stock’s upside may be limited. Analysts have set a median price target of $262.83, with 58% rating the stock as a buy, 35% as a hold, and 7% as a sell.
Apple is scheduled to release its fiscal fourth-quarter results on October 30. Investors expect insights into the performance of the new iPhone 17 and Apple Watch models. In the previous quarter, revenue rose 10% year-over-year to $94 billion, beating forecasts, driven by a 13.5% surge in iPhone sales to $44.58 billion. In July, Apple announced that it had sold 3 billion iPhones since 2007, generating over $200 billion annually from its smartphone division.
Investors are also awaiting potential updates on Apple’s shareholder return strategy. Between April and June, the company allocated $21 billion to share buybacks and $3.9 billion to dividends. Over the first nine months of the fiscal year, it spent $11.559 billion on dividends and $70.579 billion on buybacks.
“We believe Apple will exceed expectations this quarter on both strong iPhone numbers and its services business,” analysts at Wedbush Securities wrote, reiterating their “outperform” rating with a $310 price target.
They added, “The AI monetization component could add $75 to $100 per share to Apple’s story over the next few years. We believe there is no ‘AI premium’ built into Apple stock at current prices, making this large-cap tech stock attractive to own through the end of the year and into 2026.”