Apple poised to break $4T market cap milestone as iPhone sales, AI enhancements thrill investors

Core Viewpoint - The recent surge in Apple shares is driven by investor enthusiasm for artificial intelligence and expectations of a supercycle in iPhone upgrades [1] Group 1: AI Enhancements and iPhone Sales - Apple launched iOS 18.2, a significant update that enhances its Apple Intelligence functions, including Visual Intelligence [2] - The company is expected to see strong iPhone sales during the Christmas shopping season, with positive trends for iPhone 16 upgrades based on supply chain checks [3][8] - Recent AI features, such as Image Playground, are aimed at rejuvenating iPhone sales, which had previously been sluggish [7][9] Group 2: Market Capitalization and Stock Performance - Apple is on track to become the first company to surpass a $4 trillion market capitalization, driven by AI advancements [5] - As of Monday, Apple's stock was trading around $255, reflecting a nearly 40% increase since the beginning of the year [10] - Analysts predict that Apple's stock could exceed $300 per share within the next 12 months, with a market cap surpassing $4 trillion by early 2025 [12] Group 3: Financial Performance - iPhone sales totaled $46.22 billion for the July-September period, marking a 6% increase year-over-year [17] - The company has reversed two consecutive years of declining quarterly iPhone sales, indicating a recovery in demand [12][9] Group 4: Competitive Landscape - Apple has outpaced Nvidia and Microsoft in the race to reach a $4 trillion market cap, aided by a 16% increase in shares since early November [13] - Despite recent stock cooling due to concerns over a new AI chip, Blackwell, the overall outlook remains positive [14]