Apple’s stock closed at a record $251.04 on Monday, marking a big 50% increase since April, when the company launched Apple Intelligence. Despite initial underwhelming reviews, the tech giant’s shares have surged 35% this year, outpacing the S&P 500’s 28% gain and reclaiming Apple’s position as the world’s most valuable company.
People remain optimistic about Apple even though iPhone sales are slowing down. iPhones make up about half of the company’s revenue. JPMorgan analyst Samik Chatterjee expects iPhone sales to rise from 230 million units this fiscal year to 251 million units next year, maybe because of the rumored iPhone 17 Air.
Even if the expected boost in sales from AI doesn’t happen, Chatterjee believes there is still a strong reason to invest in Apple stock, based on the company’s services, such as Apple Music, Apple TV, and Apple Pay, which should continue to grow in revenue.
The stock trades at about 34 times its expected earnings for the next year, making it one of the more expensive options among the “Magnificent Seven” tech companies. Chatterjee has set a price target of $265 for Apple, which suggests a price-to-earnings (P/E) ratio of 27 based on earnings estimates for 2026.
Famed investor Warren Buffett has reduced his stake in Apple by more than two-thirds, though it remains Berkshire Hathaway’s largest public holding at $74 billion.
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