Apple (AAPL) stock hit an all-time intraday high on Thursday after a sign of confidence in its continued rally from Wall Street.
Wedbush analyst Dan Ives raised his price target on Apple shares to a new street high of $325, anticipating “a golden era of growth” for the Tim Cook-led tech giant in 2025.
“We believe Apple is heading into a multi-year, AI-driven iPhone refresh cycle that is still being underestimated by the street,” Ives wrote, continuing: “Rome wasn’t built in a day and neither will the strategy of Apple AI, but the seeds of That strategy with Apple Intelligence is now taking shape and will transform Apple’s consumer growth narrative for years to come.”
Apple shares hit $260 early Thursday, a record intraday high, before modestly paring gains. The stock was still on track for another record close after hitting a high of $258.20 on Christmas Eve. Shares have risen more than 11% over the past month and the iPhone maker is approaching a market capitalization of $4 trillion.
Apple closes 2024 on a winning streak after a difficult start to the year. It faced difficulties in iPhone sales, growing competition in China and clashes with antitrust regulators at home and abroad. Early data from the initial launch of Apple’s iPhone 16 line did little to bolster Wall Street’s confidence, with investment firm Jefferies (JEF) issuing a rare downgrade on the stock.
Other analysts, including Ives, remained bullish on the stock as more positive iPhone shipment data built confidence in Apple’s AI strategy for its consumer devices. Apple’s fourth-quarter earnings report in early November showed that the tech giant beat expectations on iPhone sales, despite missing overall estimates.
Shares began rising in early November to new highs when Apple introduced its new MacBook Pro line and, in mid-December, added ChatGPT and other Apple Intelligence AI features to iPhone, iPad, and macOS. Apple has outperformed several of its Magnificent Seven peers over the past month. While Apple stock gained more than 11% during that period, Meta (META) was up 6.7%, Microsoft (MSFT) was up 4.4%, and Nvidia (NVDA) was up 1%.
Still, macroeconomic uncertainty could create obstacles for Apple. Trump’s tariffs on China could affect prices of Apple products assembled in the country; In the worst case, it would add $256 to the cost per iPhone. The U.S. Federal Reserve’s projection that it would cut interest rates less than expected in 2025 also raised fears of persistently higher rates and sticky inflation, which would weaken consumer confidence heading into the new year.