Apple Hits Record High as Citi Raises Price Target to $365 on AI Spending Edge

• Apple stock climbed to a new all-time high, adding nearly $688 billion in market value as investors backed its disciplined AI strategy
• Citi raised its Apple price target from $315 to $365, maintaining a Buy rating on expectations of stronger earnings and continued Services growth
• While other Big Tech firms ramp up AI spending, Apple’s lower AI capex, strong free cash flow, and resilient Services business are emerging as key drivers of its latest stock rally

Apple (AAPL) stock has spent the past few weeks rewriting its own record book. Its latest rally suggests investors are buying into something bigger than momentum. As much of Big Tech pours billions into artificial intelligence infrastructure, Apple has mostly stayed on its own path. This approach, paired with resilient earnings and a growing services business, is beginning to reshape how Wall Street values the company. Citi’s latest upgrade only added fuel to that narrative.

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Apple’s AI Spending Strategy Helps Drive Record Stock Rally

AAPL stock climbed to a fresh all-time high. It managed to rally, which has seen the stock gain about 17% over the last 10 trading sessions while adding close to $688 billion to the company’s market capitalization. The move has pushed Apple’s value toward $4.7 trillion. This highlighted its position as one of the world’s most valuable listed companies.

Unlike rivals including Microsoft, Meta, Amazon, and Alphabet, Apple has avoided an aggressive AI spending race. While those companies continue investing heavily in data centers and AI infrastructure, Apple’s more measured approach has helped preserve its free cash flow and operating margins.

This hasn’t come at the expense of growth. Apple’s latest quarterly results showed Services revenue reached another record. This was supported by continued strength across subscriptions and digital offerings. The iPhone business has also remained more resilient than many analysts expected despite concerns over slowing consumer demand.

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Wall Street Splits on Apple’s Valuation Despite Record Rally

Wall Street has become divided over Apple stock. Citi raised its Apple price target from $315 to $365 while maintaining a Buy rating. They cited improving earnings expectations, continued strength in the Services business, healthy margins, and confidence in Apple’s long-term ecosystem.

KeyBanc, however, moved in the opposite direction. The firm downgraded Apple to Underweight from Sector Weight and assigned a $250 price target. They argued that iPhone shipments could slow as higher prices, weaker US upgrade cycles, and changes to carrier subsidy programs weigh on demand.

KeyBanc also warned that growth across Apple’s Mac, iPad, Wearables, and Services businesses could soften in 2027. They added that the company’s current valuation leaves little room for operational missteps.

For investors, the opposing calls point to a much bigger debate. Bulls see Apple’s disciplined AI spending, resilient cash generation, and ecosystem as reasons the rally can continue. Bears believe much of that optimism is already reflected in the share price after its rapid climb to record highs.

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