Apple Stock Gains Momentum Amid iPhone Optimism & China Progress
Apple (AAPL)โ shares continued their upward trend on Monday, marking a third consecutive sessionโฃ of gains, fueled by positive sentiment โขsurrounding iPhone sales estimates โand a broader โmarket rally โfollowing encouraging news โฃon US-Chinaโข trade talks. As the September quarter โคnears โits 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 โข500’s year-to-date gains, currently showing โa 5.7% decline compared to the S&P 500’s 12% plus increase in 2025.
The August and โearly September rally โfollowed CEO Timโ Cook’sโ proclamation of a $100 billion increase in U.S. manufacturingโข investment, a move intended to addressโ concerns from the White House. A favorable ruling in Alphabet’s antitrust case, allowing Apple โto continue receiving paymentsโข from Google, also contributed to easing โinvestor anxieties regarding potential โขtariff impactsโ and disruptions to its high-margin โservices business.
Despite these positive developments, concerns remain regarding the phased โขrollout of Apple โคIntelligence,โ the company’s generative AI suite. Management โฃoffered limited further details on the rollout during itsโ recentโฃ annualโข hardware event, addingโ to investor uncertainty.
iPhone 17 Demand & China Keyโค toโค Future โGrowth
Despite these challenges, analysts remain optimisticโค about the potential of the new iPhones. CNBC’s Jim Cramer described the iPhone 17 as “gigantic” and “more ofโ a bargain” than other smartphones, citing high โtrade-in values for older modelsโฃ (iPhone 15,โข 14, 13) combined with incentivesโ from carriers like Verizon andโ T-Mobile.
Early Wallโข Street โคresearch indicates strong initial โขdemand for the iPhone, particularly in China -โฃ a crucial market for Apple given โคincreasing smartphoneโ competition and itsโค important manufacturing presence there.
During a visit to the Corning plantโ in Kentucky,which supplies glass for iPhonesโค and โapple โขWatches,Cramer โspoke 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 โlifetime.” Cramer countered criticismโข that Apple is lagging in โฃAI progress, stating, “Those who thinkโ that apple isn’t developing or caringโ about AI are dead wrong.”
Investing Club Suggestion
The CNBC Investing Club maintains its long-standing “own it, don’t trade it”โ recommendation โfor Apple, with a price target ofโฃ $240โข – just 2% above currentโข prices. Theโ stock is still working to regain โits record-closing high of $259, achieved on โขDecember โฃ26, 2024.
Disclaimer: Jim Cramer’s Charitable Trust is long AAPL. Subscribers โto the CNBC Investingโค Club โฃwith Jim Cramer receive trade alerts โฃbefore Jim makes a trade,with a 45-minute waiting period after โคthe alert before execution. A 72-hour waiting period applies afterโ discussing a stock on โคCNBCโ TV. โคThis details is subject to the Investing Club’s Terms and Conditions, Privacy Policy, and Disclaimer. no fiduciary obligation โexists, andโ no specificโฃ outcome or profit is guaranteed.
