Apple shares hit an intraday record high on bullish Wall Street outlook and positive iPhone sales data

Apple (AAPL) hit an all-time intraday high on Tuesday as Wall Street analysts expressed bullish outlook for the stock ahead of the release of Apple Intelligence.

Apple shares hit $237.49 on Tuesday before paring gains, surpassing their previous record of $237.23 set on July 15. The stock's rise pushed it further ahead of Nvidia (NVDA) as the world's most valuable company, after Nvidia's earnings earlier in the week threatened the iPhone maker's lead.

Apple shares ended the trading day up 1.1% to $233.85. Meanwhile, Nvidia (NVDA) fell about 4.5% on Tuesday amid trade tensions in the semiconductor sector.

Analysts from Morgan Stanley (MS), Bernstein and Evercore ISI reiterated their buy ratings on Apple shares this week. Positive preliminary iPhone shipment data from International Data Corporation (IDC) showed strong demand for Apple's previous smartphone models. Sales were also boosted by Apple's launch of the iPhone 16.

“Despite the staggered rollout of Apple Intelligence in markets outside the U.S., Apple will continue to grow this coming holiday season,” said Nabila Popal, senior director of data & analytics at IDC, in a statement on Monday. IDC data released on Monday showed that global iPhone shipments rose 3.5% in the third quarter compared to a year earlier.

The news comes amid concerns over weak demand for Apple's iPhone 16 range. Wall Street analysts initially interpreted shorter delivery times for the iPhones as an omen. The assumption was that if customers could easily get their hands on the new iPhones, there would be an oversupply of phones available for purchase compared to last year, Yahoo Finance's Daniel Howley reported. Last week, Jefferies downgraded Apple shares to “hold” from “buy,” citing doubts about whether its new AI-enabled phones will live up to expectations. But Morgan Stanley said in a note to investors on Monday that Apple was simply better prepared for the release of the iPhone 16 than for previous launches.

“Our supply chain reviews indicate that this cycle, Apple has asked its suppliers to prepare component inventories earlier than usual to avoid supply shortages, unlike previous cycles where supply shortages caused supply and demand to balance for the new iPhone Pro/Pro Max models have been unbalanced for months,” wrote Morgan Stanley’s Erik Woodring. “We believe better delivery conditions are one of the factors contributing to shorter iPhone lead times this cycle than in recent cycles.”

Apple on Tuesday released its new iPad mini equipped to run its suite of AI features, Apple Intelligence. Apple will begin rolling out Apple Intelligence on October 28, but Morgan Stanley notes that more significant updates will follow in December and again in March 2025.

The story continues

Despite a rocky start to 2024 — from weak iPhone sales and layoffs to clashes with antitrust regulators at home and abroad — Apple shares are up 31% year over year, up 3.6% in the last week alone %. Analysts expect the stock to continue rising to $245.40 over the next 12 months, according to consensus estimates compiled by Bloomberg.

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. About 40 analysts recommend the stock as a buy, 19 have a hold rating and two recommend selling the stock, Bloomberg data shows.

Laura Bratton is a reporter for Yahoo Finance. Follow her on X @LauraBratton5.

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