Although not a chipmaker or language model developer, Apple’s reach and past success could allow AAPL stock to be the biggest gainer in tech. Its recent work in pushing an artificial intelligence initiative has proven positive for the stock, sending it to new highs. The company’s wide range of software and services, including iOS and streaming, have also been a huge contributor to success. As an investment option, AAPL has become an expensive yet profitable option for investors, but should you buy with that in mind?
Apple Inc. reported steady Q1 2025 results, with sales growth of 4% year-over-year and EPS coming ahead of expectations. In the tech industry, Apple ranks number one in the country in terms of market capitalization, around $200M ahead of rival Nvidia. Besides the solid earnings, Apple also announced plans to expand Apple Intelligence to new markets and languages in April 2025. This is expected to drive further adoption and enhance the user experience for Apple products using AI technology.
Apple (AAPL) to Set New ATH This Year?
The positive reports around AI investing and development, as well as solid revenue, all contribute to Apple trading near 3-Y highs. These are also driving up price predictions for the stock in the near future, with major firms raising their projections. On January 31, a Morgan Stanley analyst reaffirmed his Overweight rating and maintained a $275 price target for the shares.
Additionally, the analyst predicted a strong launch for the iPhone SE 4, with an estimated 3 million units built in the first quarter of 2025 and a total of 15 million shipments throughout FY 2025. A successful breach of these expectations could bode well for investors, sending Apple stock even higher.
Also Read: Apple (AAPL) Losing Pace as Experts Say China Can Change Everything
Furthermore, Apple’s ongoing quest for a $4 trillion market cap appears set to complete inevitably. Its biggest competition is Nvidia, which as mentioned previously is trailing by over $200M. However, Apple’s latest AI investment could help the company push ahead. Indeed, The iPhone maker previously announced a new partnership with Alibaba to support iPhones’ AI services offering in China. Not only is it a boost for Apple’s AI work, but increases its footprint in China, where the company has struggled of late. Picking back up this slack could send the stock back toward a target of $325.
In conclusion, while these updates don’t make Apple’s (AAPL) stock a surefire hit, the company’s recent momentum likely means big gains ahead.