Apple Inc. shares rallied Monday to a record high as robust demand for the new iPhone 17 series pushed the company within reach of a $4 trillion market valuation, positioning it just behind Nvidia as the world's most valuable publicly traded firm.
The stock rose 4.2% to $262.90, giving Apple a market capitalization of roughly $3.9 trillion after Counterpoint Research reported that the iPhone 17 lineup has outperformed last year's model by 14% in its first 10 days of sales across the U.S. and China.
"The base model iPhone 17 is very compelling to consumers, offering great value for money," said Counterpoint senior analyst Mengmeng Zhang. "A better chip, improved display, higher base storage, selfie camera upgrade - all for the same price as last year's iPhone 16. Buying this device is a no brainer, especially when you throw channel discounts and coupons into the mix."
The strong sales figures prompted Wall Street upgrades and renewed optimism about Apple's fourth-quarter results. Loop Capital raised its rating from "hold" to "buy," boosting its price target to $315 a share from $226. "While [Wall] Street is baking in some degree of outperformance from AAPL's iPhone 17 family of products, we believe there remains material upside to Street expectations through CY2027," analyst Ananda Baruah said in a note to clients.
Evercore ISI also added Apple to its Tactical Outperform list, citing the positive momentum in China's online preorders and shorter delivery times as indicators of sustained demand. "The recent launch of online orders in China may be a positive tailwind for the Dec-qtr, as initial delivery time data reflects stronger initial demand relative to other regions at launch," Evercore analysts wrote.
Apple's rebound comes after a turbulent first half of the year marked by competitive pressure in China and concerns over potential U.S. tariffs on Asian imports. The company's announcement of an additional $100 billion U.S. investment earlier this year helped ease those concerns, reinforcing confidence in its supply chain strategy and domestic expansion.
Chief Market Strategist Art Hogan of B. Riley Wealth said the turnaround reflects improving sentiment. "They rolled out the latest version of their iPhone and it's doing much better than anticipated ... the demand trends for the company's iPhones are now on the front foot," Hogan said.
Last week, CEO Tim Cook appeared at a launch event in Beijing for Apple's new iPhone Air, which sold out within minutes, according to the South China Morning Post. Evercore's Amit Daryanani said the device's performance in China could further boost Apple's results. "We think AAPL is well positioned to report upside to Sep-qtr expectations later this month," Daryanani wrote.
Apple shares have climbed 24% over the past three months, outpacing most of its peers in the Magnificent 7, though still lagging behind Nvidia and Microsoft in year-to-date gains.
