Apple (NASDAQ: AAPL) has solidified its position as one of the most reliable blue-chip stocks, providing stock market investors with consistent returns. This performance can be attributed to the company’s unwavering focus on strong fundamentals and impressive financial achievements.
With a proven track record of innovation, Apple has continuously released groundbreaking products that captivate consumers worldwide, fueling robust revenue growth.
Many experts and market watchers expect Apple to maintain this growth, including Wedbush analyst Daniel Ives, who offered a bold prediction on Wednesday, June 7, that the tech giant could reach a whopping $4 trillion valuation by fiscal year 2025.
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What may lift Apple’s market cap to $4 trillion?
The primary driver that could propel Apple to become the world’s first $4 trillion company is the upcoming iPhone 15 product cycle, which is expected to bring major upgrades to the most popular mobile phone to mark 15 years of its launch, Ives said.
“Our recent Asia checks give us incremental confidence that this upcoming iPhone 15 product cycle could be another trophy case moment for Cupertino kicking. We believe Apple’s fair valuation could be in the $3.5 trillion range with a bull case $4 trillion valuation by FY25.”
– Daniel Ives said.
“We estimate roughly 250 million iPhones have not been upgraded in over 4 years and sets Apple up for a major installed base upgrade cycle heading into this anniversary 15-year release,”
– he added.
The tech behemoth’s market cap currently stands at $2.8 trillion, meaning that if Ives’s predictions are materialized, a jump to $4 trillion would mark an impressive 42% valuation increase by the fiscal year 2025.
For comparison, over the past three years, Apple’s market cap saw a robust rise from $1.47 trillion to the current $2.8 trillion, representing a whopping increase of more than 89%.
Apple stock price analysis
At the time of publication, AAPL was trading at $179.21, down 0.21% on the day.
Year-to-date, the stock climbed more than 37%, staging a notable rebound after a challenging 2022 for the wider market.
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