Should You Invest in Apple Shares Now Amid Unprecedented iPhone Sales?

Apple Stock: Analyst Sees Opportunity Despite Rising Costs

On January 30, Apple’s (AAPL) stock experienced a slight decline, as concerns about increasing memory expenses dampened the excitement over the company’s record-breaking iPhone sales in its fiscal first quarter. However, Samik Chatterjee, a senior analyst at JPMorgan, suggests that now may be a good time to buy Apple shares, noting that the stock is currently undervalued compared to its historical averages.

At the time of this report, Apple’s share price has surged approximately 50% from its lowest point in the past year.

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JPMorgan’s Positive Outlook on Apple

Chatterjee’s analysis highlights that Apple’s profit margins are unlikely to be significantly impacted by higher memory prices, thanks to the company’s strong long-term agreements with suppliers.

He also points out that Apple’s current forward price-to-earnings (P/E) ratio is around 31, which is below the levels seen during previous major growth cycles.

With the anticipated multi-year upgrade cycle driven by advancements in artificial intelligence, Chatterjee believes Apple’s stock could see substantial gains in the future.

He maintains a “Buy” recommendation for Apple, setting a price target of $315 per share—implying a potential increase of nearly 24% from current levels.

AI Innovations and New Hardware Expected to Boost Apple Shares

Chatterjee notes that Apple’s ongoing collaboration with Google to bring Gemini into its ecosystem, along with plans to enhance Siri, could help revitalize the company’s services segment.

He is confident that Apple has several strategies at its disposal to support long-term, sustainable growth.

There is also speculation about a foldable iPhone launching by year’s end, which could raise average selling prices and potentially drive Apple’s stock even higher in 2026.

According to Barchart, options market activity suggests that traders expect Apple’s upward momentum to continue, with contracts expiring in mid-April currently priced with an upper limit near $275.

Wall Street’s View on Apple

While other investment firms may not be as optimistic as JPMorgan, many still advise holding onto Apple shares.

The consensus among analysts is a “Moderate Buy” rating for Apple, with an average price target of about $289—representing a possible 14% upside from current prices.