Apple's stock price hits a new high, analysts expect a market value of 4 trillion next year

According to Zhitong Finance APP, Apple Inc. (AAPL.US) closed at a new high on Tuesday, showing strong performance even as the overall market's upward momentum temporarily slowed.

According to Dow Jones market data, Apple's stock price rose 1.28% on Tuesday, closing at $242.65, with an intraday high of $242.76, a historical record. This marks the sixth increase in the past seven trading days, making it the ninth most actively traded stock in the S&P 500 on that day.

Despite reports last week indicating that Apple's iPhone sales for 2024 lag behind competitors and that consumer response to its new artificial intelligence features has been lukewarm, Apple's stock price continues to rise.

Meanwhile, Meta Platforms (META.US) also reached a new high on Tuesday, rising 3.51% to close at $613.65.

The S&P 500 index closed slightly up by less than 0.1% on Tuesday, at 6,049.88 points, setting a new historical closing record. Year-to-date, the index has risen over 26.8%, while Apple's stock price has increased by 25% this year. The tech-heavy Nasdaq index closed up 0.4% on Tuesday, at 19,480.91 points, also reaching a new high, with a year-to-date increase of 29.8%.

Undoubtedly, Apple's strong stock performance benefits from its status as a member of the "Magnificent Seven." This group consists of several major tech giants and has been a key driving force behind this year's market rally. Currently, Apple is the world's most valuable company, with a market capitalization of $3.64 trillion.

Dan Ives, a senior equity analyst and global technology research head at Wedbush Securities, believes that despite external doubts, Apple's outlook is more optimistic than many expect.

In an interview, Ives stated, "Wall Street is beginning to realize that the iPhone 16 will kick off a super cycle, with strong sales performance in the Chinese market putting short sellers into hibernation."

Ives has given Apple stock an "outperform" rating and set a target price of $300. He expects that sales of the iPhone 16 will drive a super upgrade cycle powered by artificial intelligence, breaking annual iPhone sales records, attracting over 90 million users to upgrade their devices, and helping Apple reach a market capitalization of $4 trillion by 2025