Apple hits record high as iPhone demand surges
Apple Inc. shares hit their first record of 2025 on Monday after Loop Capital upgraded the stock from “hold” to “buy”, becoming the latest firm to cite strong iPhone demand trends.
Shares rose as much as 3.1 per cent to $260.20, surpassing an all-time high set in December. The technology giant had been a high-profile underperformer among S&P 500 Index stocks for much of the year, down as much as 31 per cent at its lowest point in April.
However, the stock has since surged more than 50 per cent, turning positive for the year in late September.
The recent rally follows stronger-than-expected demand for Apple’s latest iPhone lineup, fuelling optimism that a long-awaited upgrade cycle may finally be underway.
Over the weekend, Counterpoint Research reported that the iPhone 17 series outsold the iPhone 16 by 14 per cent over their respective first 10 days on sale in the United States and China.
“We are now at the front end of Apple’s long-anticipated adoption cycle. A combination of refresh cycle and demand catalysed by new design cycles”, Loop Capital analyst Ananda Baruah said in his upgrade note. He described the rally as
Baruah also raised his price target to USD315, implying a potential upside of about 25 per cent from Friday’s close.
Investors had previously hoped for a similar boost following the release of the iPhone 16 but were disappointed when several highly promoted AI features were delayed or never launched.
However, optimism is returning as more analysts turn positive on Apple’s outlook. Evercore ISI added the stock to its tactical outperform list, saying data on iPhone demand “suggest this may be more than the average iPhone refresh cycle.”
Melius Research analyst Ben Reitzes said Apple is “getting its groove back”, noting that the company is “on a mission to silence its critics”.
He cited positive trends in China and “momentum in new models overall”, noting that upcoming products could further strengthen the company’s performance.
Still, some analysts remain cautious. Apple’s shares are trading at more than 32 times estimated earnings, well above their 10-year average of 22 times. The stock also trades at a premium to the Nasdaq 100 Index and is the most expensive member of the “Magnificent Seven” tech stocks apart from Tesla Inc.
Even with Loop’s upgrade, only 58 per cent of analysts tracked by Bloomberg recommend buying Apple shares, the lowest ratio among the Magnificent Seven, excluding Tesla.
Jefferies analyst Edison Lee, one of just four with a sell rating on Apple, warned that “sales momentum of the iPhone 17 continues to cool off.”
Earlier this month, Lee downgraded the stock to “underperform”, arguing that hype around a potential foldable iPhone is “overdone”. He cautioned that the new model would likely carry a hefty price tag and could “cannibalise” sales of the Pro Max version.
