Apple shares reached an intraday record of $331 as China approved Apple Intelligence and investors weighed new on-device AI work against the stock’s elevated valuation.
Key Points:
- AAPL reached $331 after gaining about 5% during Wednesday’s session.
- China cleared Apple Intelligence for local use with domestic technology partners.
- Major banks raised price targets before Apple’s fiscal third-quarter results.
Apple AI Catalysts
AAPL extended a record-setting week after closing Wednesday near $327, with the shares up 29.49% in 2026 and about 10% over the previous 30 days.
The rally placed Apple among the Dow’s strongest performers.
China’s Cyberspace Administration registered Apple Intelligence for domestic use, while Alibaba and Baidu are expected to provide local models and supporting technology across Apple devices.
Investors are also watching Apple’s discussions with PrismML, a startup developing technology that compresses large language models so they can run directly on iPhones with less reliance on cloud computing. The report also cited a 20% global smartphone share in the second quarter and more than $30 billion in services revenue as evidence of broader operating strength. Those figures reinforced the rally.
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Citi AAPL Targets
Citi raised its year-end AAPL target to $365 from $315 and maintained a Buy rating, arguing that selective product price increases could protect margins without causing a sharp drop in demand. “We believe Apple’s ability to implement a selective price increase will help offset margin pressure, while its premium brand and loyal customer base should limit demand weakness,” Citi said.
JPMorgan lifted its target to $345 and Morgan Stanley moved to $360, although the rapid advance raises the risk of a pullback if fiscal third-quarter results in late Jul. miss expectations.
Lower U.S. inflation has also supported highly valued technology shares because softer price data reduced expectations for additional interest rate increases during the remainder of 2026. That backdrop matters because investors often value future corporate earnings more generously when borrowing costs appear likely to stabilize or decline further.
Apple’s record followed a sharp change in sentiment. About a month earlier, investors criticized price increases across the company’s product lineup, creating concern that higher costs could weaken demand during the next upgrade cycle.
China’s AI approval and new device-level AI prospects then shifted attention toward sales growth, helping drive the stock’s latest 30-day advance.
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