(Bloomberg) – Apple Inc. (AAPL) stock rose to a record high on Tuesday, paring recent gains largely on optimism the company hopes to gain from the rollout of an artificial intelligence-powered iPhone. Expanded.
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The stock rose 2.7% to $237.49, surpassing its previous high in July. The rise cemented Apple’s status as the world’s largest company, with a market valuation of more than $3.6 trillion.
We’re seeing big tech companies making strides more broadly, but Apple is doing particularly well. The company’s stock price has risen 37% over the past six months, more than double the 15.5% rise in the Nasdaq 100 index.
Apple is buoyed by excitement over the introduction of the AI-powered iPhone, launched last month. Earlier Tuesday, the company announced a new iPad mini with similar features.
Evercore ISI has issued a tactical outperform trading call on the company’s stock ahead of its expected quarterly results later this month.
“While bearish investors remain focused on China’s smartphone market, we believe the risks here are overvalued and can be offset by growth in developing markets and a strong upgrade cycle in the US. Our research shows strong demand for upgrades due in part to “AI,” the company wrote.
Melius Research also liked the stock, citing “unparalleled share buybacks” and writing that growth is accelerating in “the next multi-year iPhone cycle.”
Despite early signs of demand for mobile phones being muted, investors continue to embrace the stock as they also see it as a safe haven against macroeconomic uncertainty. There is also optimism that a major upgrade cycle will help reaccelerate growth over the next few quarters.
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