Apple’s Record Valuation Fuels Profit-Taking Debate Before iPhone Duo Release

Apple Nearly Hits $5 Trillion as Shares Slip Below Key Level

Key Takeaway:

• Apple nears $5 trillion valuation: Shares rose 0.7% to $341.21 in late trading Tuesday after reaching an intraday high of $345.34. A closing price of $342.602 would push Apple’s market capitalization above $5 trillion.

• Nvidia remains the only other company above the milestone: Nvidia surpassed a $5 trillion market capitalization on October 29, 2025. Apple previously reached the level during trading on July 28 and 29.

• Investor confidence supports Apple shares: Apple is increasingly viewed as a safe-haven stock as other technology companies spend heavily on AI infrastructure, putting pressure on their free cash flow.

• Apple is entering a period of major change: New CEO John Ternus has succeeded Tim Cook, while Apple’s foldable iPhone Duo—priced from $1,999—represents the company’s biggest iPhone design change and launches October 23.

New Product Launches Boost Apple Revenue Forecasts

Apple’s iPhone Duo, introduced in early September, is expected to reach stores in October. Its financial contribution will therefore appear for the first time in the company’s fiscal first-quarter 2027 results, scheduled for release early next year. Apple has also increased prices on older iPhone models by $100, attributing the move to rising memory-component costs.

Analysts expect Apple to generate around $528 billion in fiscal 2027 revenue, up approximately 10.5% from fiscal 2026. This would represent a notable acceleration from the company’s 2% compound annual growth between 2022 and 2025. Earnings growth is projected to be slower, with fiscal 2027 EPS estimated at $9.59, or about 9%. Higher memory costs and the loss of tariff refunds are expected to pressure profit margins despite the price increases.

 High Valuation Creates Diverging Views on Apple’s Outlook

Apple is currently valued at 35.35 times its projected 2027 earnings, nearly 30% above its five-year average forward P/E ratio. This premium valuation has become a key source of disagreement among Wall Street analysts.

Evercore ISI raised its Apple price target to $380 the highest on Wall Street after its proprietary surveys pointed to stronger-than-expected demand for the iPhone 18 Pro and Pro Max.

BofA analyst Wamsi Mohan expects strong demand for the new iPhone cycle and maintains a Buy rating with a $370 price target. The delayed, AI-powered Siri is available only on newer iPhone models and may encourage future upgrades.

UBS remained more cautious, maintaining its Neutral rating. The firm cited signs of softer demand, including shorter wait times for the iPhone 18 Pro compared with last year’s launch, raising questions about whether consumer enthusiasm matches the more optimistic forecasts.