Today's solid gains in Apple (NASDAQ: AAPL) (+0.9%) can be traced to three things: 1. a technical break-out, 2. sentiment around the stock eclipsing the $3 trillion valuation, and 3. (maybe most importantly) raised iPhone estimates at Mizuho following checks.

On the Mizuho iPhone checks, Japanese analyst Yosuke Nakane raised his Apple iPhone production estimates by 10 million units. The analyst is raising his 2023 units production figure from 217mn to 227mn (+10mn units) on stronger legacy models, and new iPhone 15 series production will be Oct-Dec Q weighted due to camera yield issue.

Last week, Fairlead Strategies' Katie Stockton said Apple was poised to confirm its breakout move above final resistance near $183 in a bullish long-term development. She added that it is possible to estimate a projected value of around $254 for Apple by late 2024. The upward trend appears to be strong without any signs of a reversal at the moment. In the event of a temporary decline, the initial support level can be found at the rising 20-day moving average, she added.

On the $3 trillion valuation (currently $2.986 trillion), Wedbush analyst Dan Ives highlights that Apple has the potential to enter the exclusive $3 trillion market cap club if its stock reaches $190.73, representing a 1.5% increase from the previous closing price. Despite facing challenges in the Chinese supply chain and a softer macro environment over the past year and a half, Apple managed to overcome them and is now on the verge of reaching the $3 trillion milestone again, defying the expectations of bearish analysts. They believe that Apple's growth story is far from broken, and in fact, Cupertino is poised for significant growth in the next 12 to 18 months, driven by a substantial opportunity for iPhone upgrades among a large portion of its customer base who haven't upgraded their iPhones in over four years.

"We believe Apple's fair valuation could be in the $3.5 trillion range with a bull case $4 trillion valuation by FY25," Ives added.

By StreetInsider.com Staff