Apple Stock Gains Momentum Amid iPhone Optimism & China Progress
Apple (AAPL) shares continued their upward trend on Monday, marking a third consecutive session of gains, fueled by positive sentiment surrounding iPhone sales estimates and a broader market rally following encouraging news on US-China trade talks. As the September quarter nears its end, Apple’s stock has risen over 15% quarter-to-date, outpacing the S&P 500’s 6.5% increase.
However, despite this recent performance, Apple still lags behind the S&P 500’s year-to-date gains, currently showing a 5.7% decline compared to the S&P 500’s 12% plus increase in 2025.
The August and early September rally followed CEO Tim Cook’s proclamation of a $100 billion increase in U.S. manufacturing investment, a move intended to address concerns from the White House. A favorable ruling in Alphabet’s antitrust case, allowing Apple to continue receiving payments from Google, also contributed to easing investor anxieties regarding potential tariff impacts and disruptions to its high-margin services business.
Despite these positive developments, concerns remain regarding the phased rollout of Apple Intelligence, the company’s generative AI suite. Management offered limited further details on the rollout during its recent annual hardware event, adding to investor uncertainty.
iPhone 17 Demand & China Key to Future Growth
Despite these challenges, analysts remain optimistic about the potential of the new iPhones. CNBC’s Jim Cramer described the iPhone 17 as “gigantic” and “more of a bargain” than other smartphones, citing high trade-in values for older models (iPhone 15, 14, 13) combined with incentives from carriers like Verizon and T-Mobile.
Early Wall Street research indicates strong initial demand for the iPhone, particularly in China - a crucial market for Apple given increasing smartphone competition and its important manufacturing presence there.
During a visit to the Corning plant in Kentucky,which supplies glass for iPhones and apple Watches,Cramer spoke with Apple CEO Tim Cook,who emphasized the company’s commitment to AI. Cook described AI as “an ‘all-in’ situation” and “perhaps the moast profound change in his lifetime.” Cramer countered criticism that Apple is lagging in AI progress, stating, “Those who think that apple isn’t developing or caring about AI are dead wrong.”
Investing Club Suggestion
The CNBC Investing Club maintains its long-standing “own it, don’t trade it” recommendation for Apple, with a price target of $240 – just 2% above current prices. The stock is still working to regain its record-closing high of $259, achieved on December 26, 2024.
Disclaimer: Jim Cramer’s Charitable Trust is long AAPL. Subscribers to the CNBC Investing Club with Jim Cramer receive trade alerts before Jim makes a trade,with a 45-minute waiting period after the alert before execution. A 72-hour waiting period applies after discussing a stock on CNBC TV. This details is subject to the Investing Club’s Terms and Conditions, Privacy Policy, and Disclaimer. no fiduciary obligation exists, and no specific outcome or profit is guaranteed.
