(Bloomberg) -- Apple Inc. shares rose to a record high on Tuesday, extending recent gains fueled largely by optimism that the company will gain from the rollout of artificial-intelligence-powered iPhones.
The stock rose as much as 2.7% to $237.49, pushing back over the previous peak hit in July. The rally has cemented Apple’s status as the world’s largest company, with a market valuation above $3.6 trillion.
While there’s been a strong advance by big tech companies more broadly, Apple’s has been particularly strong. The stock has risen 37% over the past six months, more than twice the 15.5% gain of the Nasdaq 100 Index.
Apple has been supported by excitement over the introduction of an iPhone with AI features, which went on sale last month. Earlier on Tuesday, the company introduced a new iPad mini built for similar capabilities.
Evercore ISI issued a tactical outperform trading call on the stock ahead of its quarterly results, expected later this month.
“Bearish investors remain focused on the Chinese smartphone market, but we think the risk here is overstated and can be offset by growth in developing markets and a strong upgrade cycle in the US where our survey work points to strong upgrade demand, driven in part by AI,” the firm wrote.
Melius Research is also positive on the stock, citing its “unparalleled buyback” and writing that growth is picking up amid a “multi-year cycle ahead in iPhone.”
Though early signs of demand for the phone have been tepid, investors have continued to embrace the stock, seeing it also as a safe haven against macroeconomic uncertainty. There is also optimism that over the coming quarters, a large upgrade cycle will fuel a re-acceleration in growth.
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