Apple Inc. climbed to the position of the world’s second-most valuable publicly traded company on Monday, surpassing Microsoft after shares rose 4%.
The company now boasts a market capitalization of $3.922 trillion, while Microsoft sits at $3.846 trillion.
Microsoft had surpassed Apple to became the second most valuable company in July after breaching $4 trillion market capitalization.
Nvidia remains the most valuable company at $4.467 trillion.
Apple’s ascent follows strong early sales of the iPhone 17, which has boosted investor confidence.
Despite the gains, Apple’s stock is up just 8% year-to-date in 2025, lagging behind the 19% gain of the Nasdaq 100 Index over the same period.
Strong iPhone sales drive optimism
Loop Capital recently upgraded Apple from hold to buy, raising the price target to $315 from $226, a Street-high outlook implying roughly 25% upside from Friday’s close.
Analyst Ananda Baruah highlighted that Apple is at the front end of a long-anticipated adoption cycle, suggesting that iPhone shipments will continue to expand through CY2027.
This cycle is fueled by a combination of regular refresh cycles and demand from new design iterations, reflecting faster replacement of older devices.
Supporting this positive outlook, data from Counterpoint Research indicates that the iPhone 17 series outsold the iPhone 16 by 14% in the US and China over the first ten days of availability.
Analyst Mengmeng Zhang noted that the base model iPhone 17 offers better performance, upgraded features, and more storage at the same price as last year’s model, making it highly appealing to consumers.
Analyst John Donovan from Loop Capital also emphasized “surging demand” for the iPhone 17, with CQ3 2025 shipments reaching 56.5 million units, surpassing expectations.
Loop projects that Apple could see three consecutive record iPhone shipment years from 2025 to 2027, further underpinning the company’s long-term growth potential.
Market reaction and analyst consensus
Apple shares rose 4.7% on Monday, hitting an all-time high and surpassing the previous record set in December 2024.
The rally underscores investor confidence in both near-term catalysts, such as iPhone 17 demand, and broader structural growth in Apple’s flagship smartphone business.
Loop Capital is not alone in its positive stance.
Evercore ISI recently added Apple to its tactical outperform list, highlighting demand that may exceed typical refresh cycles.
According to Bloomberg data, 58% of analysts currently recommend buying Apple, a slightly lower ratio compared with other large-cap tech stocks.
Over the past three months, Apple shares have gained 24%, reflecting renewed investor confidence following a period of underperformance.
Among 52 analysts covering the stock, 32 maintain buy or strong buy ratings, according to LSEG data.
Long-term prospects and innovation
Apple’s growth outlook is further supported by plans to introduce lighter, foldable designs and its first purpose-built AI Phone, projected to sustain elevated demand and drive adoption.
Loop Capital emphasizes that while some outperformance from the iPhone 17 is already priced in, material upside remains through 2027.
With record sales, strong product innovation, and continued analyst optimism, Apple’s shares are well-positioned for long-term upside.
Monday’s 3% gain reinforces the company’s trajectory toward all-time highs, reflecting investor confidence in both immediate product catalysts and broader structural growth.
Apple’s performance highlights its central role in the tech sector and investor focus on sustained demand for flagship devices, positioning the company as a core holding for long-term growth strategies.
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