Apple Stock Just Exploded - Here’s Why It’s Rocketing Higher

Apple shares surge as tech giant unveils groundbreaking AI integration across entire product ecosystem.

The Catalyst Behind the Rally

Investors are piling into Apple after the company demonstrated seamless artificial intelligence implementation that actually works—unlike most tech buzzword bingo. The stock ripped higher on volume triple the daily average, crushing short sellers who bet against Tim Cook's innovation pipeline.

Wall Street's Reality Check

Analysts scrambled to upgrade price targets while quietly wondering if this is another 'peak iPhone' moment dressed in AI clothing. The rally puts Apple within striking distance of its all-time high, though seasoned traders remember how quickly tech euphoria can evaporate when quarterly earnings hit. Because nothing makes financial experts more nervous than actual innovation disrupting their spreadsheet models.

Image source: Getty Images.

iPhone 17 demand

Tech site The Information broke the first news just ahead of the weekend, reporting that Apple has been telling its suppliers to increase production of parts specific to the $799 iPhone 17 rather than the $1,099 iPhone 17 Pro by 30%. As The Fly reports, this suggests stronger demand for the cheaper phone than the more expensive -- in line with corollary reports that consumers are feeling stretched and are starting to pinch pennies.

That's the bad news.

The good news, asjust observed, is that shipping lead times for iPhone 17 orders have expanded to 18 days -- nearly twice the 10-day lead times observed for the iPhone 16 last year. And this suggests strong demand, albeit perhaps for cheaper iPhones.

Is Apple stock a buy?

Last but not least, we learned today that Wedbush is raising its price target on Apple stock to $310 a share, implying more than 21% upside in Apple stock. Wedbush says it's "positively surprised" to see iPhone 17 demand tracking 10% to 15% ahead of demand for the iPhone 16 last year. iPhone production is up at least 20% this year, says the banker, arguing investors are "clearly underestimating this iPhone cycle."

Even assuming margins are lower on cheaper iPhones, 20% to 30% demand growth WOULD imply Apple's earnings can grow faster than the 12% long-term growth rate most analysts forecast for Apple. Maybe not fast enough to justify Apple's 37x earnings P/E ratio -- but apparently enough to boost the stock a bit anyway.