TLDR
- Apple stock hit an all-time high of $287.40 on Tuesday, marking seven straight days of gains
- iPhone 17 sales are showing double-digit growth, reversing four years of single-digit increases
- The stock is up 16% since October 10, outperforming the S&P 500 by 12 percentage points
- Loop Capital raised its price target to $325, citing an expected 22 million more iPhone 17 base model units through June
- Investors appear unfazed by the departure of AI chief John Giannandrea, focusing instead on strong device sales
Apple stock reached an all-time high of $287.40 on Tuesday. The milestone came just one day after the company’s AI chief announced his retirement. Shares have now climbed for seven consecutive days, the longest winning streak since May.
The stock’s performance suggests Wall Street has moved past concerns about Apple Intelligence and the company’s AI strategy. iPhone sales are doing the heavy lifting instead. The iPhone 17 lineup appears to be breaking a four-year pattern of sluggish growth.
Over the past four years, iPhone sales grew 7% or less annually. Fiscal 2025, which ended in September, saw just 4.2% growth. But the iPhone 17 has changed that trajectory in a hurry.
Recent data from research firms like Counterpoint shows iPhone sales growth has returned to double digits. Wall Street analysts are forecasting 11% iPhone sales growth in the first quarter. That’s the critical holiday shopping season when gift purchases drive revenue.
Apple shares are up 16% since October 10. That’s when positive reports about iPhone 17 sales started piling up. The stock has beaten the S&P 500 by 12 percentage points during this period.
Loop Capital Sees More Upside
Loop Capital raised its price target on Apple to $325 from $315 while keeping a Buy rating. The firm based its new target on supply chain research showing stronger demand for base model iPhones.
The analyst expects Apple to sell about 22 million more iPhone 17 base model units than previously forecast. This increase runs from the December quarter through the June quarter. Sales of the discontinued iPhone 16 Pro and Pro Max models are dropping off as expected.
The iPhone 17 Air isn’t selling as well as some hoped. But the base model’s strength more than makes up for it.
Loop Capital also adjusted its average selling price projections downward. The change accounts for subsidy arrangements Apple has with wireless carriers. These deals help make premium phones more affordable for customers.
Back to Basics
Apple is once again trading on fundamentals that have always mattered most. Device sales lead the list. The company’s massive and loyal user base comes next. Growth in the services business continues to add steady revenue.
Then there’s the cash return program. Apple is approaching an all-time total of $1 trillion returned to shareholders through buybacks and dividends.
John Giannandrea, who led Apple’s AI efforts, announced he would step down from his role. He’ll stay on as an advisor until retiring in 2026. Amar Subramanya will take over as vice president of AI.
The leadership change comes as Apple faces ongoing questions about its AI strategy. Apple Intelligence launched to mixed reviews. But investors are signaling they care more about iPhone sales than AI headlines right now.
Wedbush maintained its Outperform rating with a $320 price target following the AI leadership news. JPMorgan kept its Overweight rating with a $305 target, noting longer lead times for iPhone 17 orders that match seasonal demand patterns.
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