Apple Stock Surges 4.3% as iPhone 17 Demand Drives 50% Rally

Apple Inc. (AAPL.US) experienced a significant turnaround in its stock price, rising from a 30% decline to a 50% increase within a short period. The tech giant's stock price surged 4.3% to $256.10 on Monday, marking a 2.3% gain for the year. This recovery comes after the stock hit a low point in April due to uncertainties surrounding tariffs, which had caused a year-to-date decline of over 30%. Since then, the stock has rallied nearly 50%.

The recent strength in Apple's stock price can be attributed to the easing of tariff concerns and growing market optimism about the strong demand for the latest iPhone models, particularly the higher-priced versions. The new iPhone series has been a significant driver of this positive momentum, with analysts and investors alike expressing confidence in its ability to support Apple's growth.

Wedbush Securities, a prominent investment firm, raised its target price for Apple from $270 to $310, citing the robust demand signals for the iPhone 17 series. The firm noted that the new iPhone models are driving Apple into a genuine upgrade cycle and maintained its "outperform" rating on the stock. Daniel Ives, a leading analyst at Wedbush, stated that the demand for the iPhone 17 series, which went on sale last weekend, has exceeded expectations, with sales outpacing the iPhone 16 series by 10% to 15%.

Bill Stone, the chief investment officer at Glenview Trust Company, which manages approximately $157 billion in assets and holds Apple stock, commented that the demand for the new products has been stronger than anticipated. This unexpected strength has fueled buying interest in the stock. Stone noted that previous expectations were relatively low, making the robust demand a pleasant surprise that has provided a significant boost to the stock.

Despite the impressive rebound, Apple's performance still lags behind other major tech companies, particularly those with a stronger presence in the artificial intelligence sector. The Nasdaq-100 index has risen 18% year-to-date, with stocks like NVIDIA, Alphabet, and Meta Platforms surging over 30%. Microsoft has also seen a year-to-date increase of over 20%. Apple's stock price remains 1.1% below its historical high.