Apple's Stock Soars 50% on iPhone 17 Demand, Tariff Ease

Apple Inc. (AAPL.US) has seen a remarkable turnaround in its stock price, rising from a 30% decline to a 50% increase within a short period. The tech giant's stock price has surged, driven by strong demand for its latest iPhone models, particularly the higher-priced versions. This surge has pushed Apple's stock price to within striking distance of its all-time high, marking a significant recovery from its low point in April when it faced uncertainty over tariffs.

The recent strength in Apple's stock can be attributed to the easing of tariff concerns and growing market optimism about the robust demand for the new iPhone models. This optimism has been fueled by positive signals from the market, including strong pre-order numbers and analyst upgrades. Wedbush, for instance, raised its target price for Apple from 270 dollars to 310 dollars, citing the strong demand for the iPhone 17 series. The firm noted that the new iPhone models are driving a genuine upgrade cycle for Apple, maintaining its "outperform" rating on the stock.

Analysts have been impressed by the demand for the iPhone 17 series, which began selling over the weekend. The sales figures have exceeded expectations, with sales outpacing the iPhone 16 series by 10% to 15%. This strong demand has been a pleasant surprise for investors, who had previously underestimated the potential for the new iPhone models. The chief investment officer of Glenview Trust Company, which manages approximately 157 billion dollars in assets and holds Apple stock, noted that the demand for the new products has been stronger than anticipated, driving significant buying interest in the stock.

Despite the strong performance, Apple's stock price still lags behind other major tech companies, particularly those with a strong presence in the artificial intelligence sector. The Nasdaq-100 index has risen by 18% year-to-date, with companies like NVIDIA, Alphabet, and Meta Platforms seeing their stock prices surge by more than 30%. Microsoft has also seen a year-to-date increase of over 20%. Apple's stock price remains 1.1% below its historical closing high, indicating that there is still room for growth.