By now, investors are used to seeing Apple soaring to new heights with consistently strong revenue. But things have recently taken a turn. Apple (AAPL) stock dipped nearly 5% earlier this month. The drop didn’t come without warning. Some analysts have been predicting that Apple would take a hit in light of President Donald Trump and his administration’s planned tariffs, which affect China, where the majority of Apple products are manufactured.
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Despite the blow, Apple is still a robust company, and analysts are advising investors not to bail on its stock despite disappointing earnings. As of Feb. 4, AAPL is trading at $232.80 — up by over 2%. Will it go higher this year? How high could it go?
The Incredible Wealth-Building Trajectory of Apple Stock
Apple has performed astronomically well for investors over the past few decades. Early investors who may not have had much money to begin with may be millionaires today solely because of their investments in the tech giant.
“If you invested $1,000 in Apple when it went public more than 40 years ago it would be worth more than $2.3 million today,” said Rick Munarriz, contributing analyst at The Motley Fool. “Zoom in a bit, and the shares have nearly tripled over the past five years. It’s never a straight line up, but Apple has beaten the market for patient investors over long stretches of time.”
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Apple’s Growth Trajectory for the Next Few Years Could Be Slow
Apple has long been somewhat predictable for investors, who generally believe in the company because of its inimitable technology — chiefly iOS. Consistently, for years, Apple was seeing double-digit revenue growth thanks primarily to its steady improvements of its bestselling product, the iPhone. But now, it’s not looking like the iPhone is packing as big of a punch as it used to. The days of double digit growth are, at least at present, over.
“That streak ended in 2024 when it clocked in with its third consecutive year of single digit growth,” Munarriz said. “The AI features of the new iPhone didn’t resonate with consumers — at least not yet — and the $3,500 Apple Vision Pro extended reality headset didn’t sell well because it’s too expensive.”
Additionally, Apple recently scrapped developments of the augmented reality glasses it was long hyping up, making for another blow to its potential. The pressure is now back on the performance of the iPhone.
“Apple investors are back to hoping that the next iPhone that rolls out in the fall of this year finally moves the needle,” Munarriz said.
Apple May Be Overvalued Right Now
There’s some speculation among analysts that Apple’s valuation is a bit overzealous, and that the company may not be worth quite as much as its price tag reflects.
“Apple is trading for a little more than 30 times this year’s expected earnings,” Munarriz said. “It’s a rich multiple for a company that is growing a lot slower than that, but just like customers are willing to pay a premium for the Apple difference it seems as if investors feel the same way. With its $3.4 trillion market cap, Apple is the most valuable U.S. exchange-listed company. I think the valuation is a bit high at this point, but that approach has burned cautious investors when it comes to Apple.”
Jason DeLorenzo, CEO of Volland Research, is of the opinion that Apple is overvalued. “The PE Ratio is currently ~39, which is fine for a growth stock,” he said. “But since the watch, there are very few growth areas for Apple, so I believe that is overvalued.”
Apple Stock Could Top $300 by January 2026
The burning question for investors both new and seasoned: How high could Apple stock go this year? If it overcomes its challenges by flooring the gas on innovation, it could reach record highs.
“I wouldn’t be surprised if it gets back up that mark this year, but it’s going to need a game-changer — whether it’s a head-turning iPhone 17 or a surprisingly innovative product rollout to justify topping $300 by the end of this year,” Munarriz said.
DeLorenzo said that Apple stock could reach an upper bound of $280 by June and $300 by January 2026.
“While these upper bounds can be reached this year, AAPL does not currently have any support from institutional puts,” DeLorenzo said. “Therefore, if AAPL avoids any negative catalysts such as missing earnings, those upside levels should be met. But if there is a negative catalyst to AAPL, I would expect to see institutions start buying protective puts to establish downside support.”
Though there’s reason for optimism, Apple has some challenges to overcome and one of those could be outside of its control: tariffs.
“Tariffs will hurt Apple strongly since a lot of their manufacturing is in China,” DeLorenzo said.
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This article originally appeared on GOBankingRates.com: Experts Predict How High Apple Stock Could Go in 2025
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
