Jim Cramer: Apple Stock Vindicates Patient Bulls, Rally Just Beginning

Apple stock is reclaiming its momentum, rewarding investors who maintained faith in the company’s strategy despite widespread skepticism. The recent surge to an all-time high underscores robust demand for the latest iPhone lineup, with early sales data and analyst upgrades signaling that the rally may have just begun. On Monday, shares climbed sharply, approaching the previous record close set in late December 2024.

Financial commentator Jim Cramer emphasized that many fears—such as steep price hikes due to tariffs or weak consumer interest tied to Siri’s capabilities—have proven unfounded. He described these concerns as exaggerated, reinforcing his view that Apple remains a compelling investment. Fresh data from Counterpoint Research shows the iPhone 17 series outselling its predecessor, the iPhone 16, by 14% in both the United States and China during its initial ten days on the market. According to the firm, the base iPhone 17 delivers outstanding value, featuring a faster processor, an enhanced display, increased storage, and a better front-facing camera—all while retaining last year’s price.

Cramer has repeatedly pointed out that trade-in promotions and carrier discounts make upgrading especially attractive. Counterpoint also noted that the newly introduced iPhone Air is performing slightly ahead of the iPhone 16 Plus. In China, preorders for the iPhone Air, which relies exclusively on eSIM technology, sold out almost instantly. Analysts view this as a significant step for Apple and for broader eSIM adoption.

Wall Street firms are echoing this optimism. Loop Capital raised its rating on Apple from hold to buy and lifted its price target to $315, suggesting potential gains of over 19% from recent peaks. The firm believes consensus estimates for iPhone 17 performance may still be too conservative, with upside likely extending through calendar year 2027. Similarly, Melius Research analyst Ben Reitzes stated that Apple appears determined to prove its critics wrong. He anticipates stronger sales in China, improved profit margins driven by iPhone 17 Pro Max demand, and reduced tariff-related cost pressures. Reitzes, who maintains a buy rating and a $290 price target, also expects shares to benefit into 2026, especially as Siri receives substantial AI enhancements.

Cramer noted that he had long championed the new iPhones well before their September release. He expressed little surprise at the positive reception, remarking that the market is finally recognizing what he had been advocating. Monday’s advance of roughly 4.5% pushed Apple’s year-to-date gain to nearly 5.3%. For much of early 2025, the stock had lagged, weighed down by AI-related doubts, regulatory pressures, and fears that tariffs would raise device costs. However, the trend reversed in August after CEO Tim Cook announced an additional $100 billion investment in U.S. manufacturing, a move seen as addressing political calls to reshore segments of Apple’s supply chain.

Cramer observed that many investors initially underestimated Apple, assuming the company had lost its innovative edge. The wave of encouraging updates, however, reaffirms his stance that the stock has further room to advance. He consistently advises shareholders to hold Apple for the long term rather than engage in short-term trading. It is worth noting that, despite recent gains, Apple has underperformed most of its “Magnificent Seven” peers this year, with Amazon being the only member of the group in negative territory year-to-date.

(Source: CNBC)