Nasdaq leads stocks lower while Nvidia and chip stocks sell off

Apple shares (AAPL) hit a new intraday high of $237.49 on Tuesday, surpassing its previous record of $237.23 set on July 15. The stock's rise boosted its market capitalization by about $70 billion, putting it further ahead of Nvidia (NVDA) as the world's most valuable company after Nvidia's profits threatened the iPhone maker's leadership.

After setting the record, the stock gave back its gains, rising about 1.5% in afternoon trading. Meanwhile, Nvidia fell around 4%.

Apple's move higher comes a day after preliminary data showed rising demand for iPhones in the third quarter. According to International Data Corporation (IDC), global iPhone shipments increased 3.5% year over year.

“While the growth of Chinese players in emerging markets has been an ongoing theme this year, Apple also recorded 3.5% year-on-year shipment growth in the quarter, driven by strong demand from previous models and the launch of the new iPhone 16 series. “Nabila Popal, senior director of data and analytics at IDC, said in a statement on Monday.

“Despite the staggered rollout of Apple Intelligence in markets outside the U.S., Apple will continue to grow during the upcoming holiday season,” she added.

Apple on Tuesday released its new iPad mini equipped to run its AI features.

Apple is expected to report earnings on Oct. 31, and Wall Street analysts tracked by Bloomberg expect earnings to rise 9% from a year ago to $1.59 per share. According to Bloomberg data, around 40 analysts recommend buying the stock, 19 have a hold rating and two recommend selling the stock. Apple shares are up 32% from a year ago, and analysts expect the stock to rise further to above $245 in the next 12 months, data compiled by Bloomberg show.