Apple shares rose to a new all-time high of $237.23 following a strong third-quarter earnings report. The stock has fallen from its peak, but is bucking a broader sell-off in the tech sector that has had a bigger negative impact on Microsoft and Amazon. Apple’s robust performance, fueled by growth in services, iPads and Macs, as well as optimism for an iPhone supercycle driven by Apple Intelligence, has cemented its premium valuation.

Kenio Fontes for GuruFocus:
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This new valuation level for Apple is justified by the company’s responsibility for spreading artificial intelligence (or Apple Intelligence) technology across its strong user base and the monetization it can generate, such as a better cycle for its hardware and maintaining service revenue momentum.

While only the latest iPhones can fully utilize Apple Intelligence features, Macs with Apple Silicon have had these features since 2020…

Management expects fourth-quarter revenue to grow as much as the third quarter, by nearly 5%. They also expect gross margin to be between 45.50% and 46.50%, which is also close to last quarter’s figure. This forecast was higher than Wall Street expected…

I believe that the third quarter was a turning point for Apple. The company seems to be back on a growth trajectory (albeit behind other major technology companies) and has managed to catch up with its competitors in the AI ​​race, which significantly improves its prospects in the medium and long term.

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MacDailyNews Opinion: The faster Apple can release high-quality Apple Intelligence features, the better!
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