- Apple is on track to become the first company with a market cap exceeding $4 trillion, currently valued at $3.92 trillion. Stock growth has been fueled by optimism around AI advancements in iPhones and other devices. Analysts predict continued growth, citing strong iPhone upgrades and a new revenue stream from Apple Intelligence.
Apple is poised to become the first company to have a market capitalization of more than $4 trillion. Its valuation stood at $3.92 trillion before the opening bell on December 27. Should it cross the $4 trillion mark, it will do so ahead of Microsoft ($3.26 trillion) and Nvidia ($3.43 trillion), the two other companies that are within striking distance of the technically meaningless but nonetheless spectacular milestone.
Apple stock (AAPL) has risen 40% this year, largely on the promise of AI improvements to the iPhone and the company’s other devices.
Apple has also been buoyed by enthusiasm from various analysts. Wedbush analyst Daniel Ives and his team published a research note for investors on December 26 entitled “iPhone 16 Cycle is Just the Beginning of a New Era for Cupertino.”
"We are raising our price target on Apple to $325 (from $300) as a golden era of growth for Cupertino is now on the horizon into 2025,” wrote Ives — a veteran Apple bull — in the note seen by Fortune.
“We believe Apple is heading into a multi-year AI driven iPhone upgrade cycle that is still being underestimated by the Street. Rome wasn't built in a day and neither will Apple's AI strategy but the seeds of that strategy with Apple Intelligence are now forming and will transform the Apple consumer growth narrative over the coming years.
“We estimate that with hundreds of apps in development around Apple Intelligence that in essence creates a new multi-billion annual Services revenue stream will be another growth catalyst along with catalyzing iPhone upgrades across the board over the next 12 to 18 months. We believe Apple is on pace to reach the $4 trillion market cap threshold and be the first member of this exclusive club.”
JPMorgan analyst Samik Chatterjee also thinks Apple stock has further room to grow, mostly on increases in sales of the upcoming iPhone 17. “We see upside in … the transformation of the company to Services, growth in the installed base, technology leadership, and optionality around capital deployment,” he told clients in a recent note.
Both analysts were contacted for comment.
