Citi analysts have reaffirmed their buy rating for Apple Inc. (AAPL) and raised the stock’s price target from $315 to $350, indicating a potential 26.3% increase from its current price of $277.18. This optimistic outlook is driven by anticipated growth in iPhone sales and advancements in artificial intelligence (AI) capabilities.
Anticipated Surge in iPhone Sales
The analysts project a significant uptick in iPhone sales, attributing this to a large segment of customers who are due for device upgrades after prolonged use of their current models. This expectation aligns with a recent International Data Corporation (IDC) report, which revised the iPhone’s shipping forecast for 2025 upward to 6.1%, an increase from the previous estimate of 3.9%.
Apple’s latest quarterly results have further bolstered this positive sentiment. CEO Tim Cook expressed confidence in the initial performance of the iPhone 17, a sentiment echoed by reports from IDC and Counterpoint Research, both highlighting the device’s strong market reception.
Advancements in Artificial Intelligence
In addition to hardware sales, Citi’s analysts are optimistic about Apple’s progress in AI. They point to a strategic partnership with Google, which is expected to enhance Siri’s capabilities, delivering on AI features announced during the previous year’s Worldwide Developers Conference (WWDC) that have yet to be fully realized. The analysts believe this collaboration will enable Apple to offer a more powerful Siri experience while continuing to develop its proprietary AI models.
Stock Performance and Market Context
Apple’s stock has been on a recovery trajectory following a challenging period in early 2025, marked by trade tensions and leadership changes. Since August, the company’s expanded $600 billion commitment to the U.S. economy has helped alleviate regulatory pressures and restore investor confidence. Consequently, Apple’s stock has appreciated approximately 30% since then, achieving a year-to-date gain of 13.7%.
As of December 11, 2025, Apple’s stock is trading at $278.78, reflecting a slight increase from the previous close. The stock’s performance is underpinned by a market capitalization exceeding $3 trillion, a price-to-earnings (P/E) ratio of 30.28, and earnings per share (EPS) of $6.59.
Conclusion
Citi’s reaffirmation of Apple’s buy rating and the increased price target underscore a strong belief in the company’s growth prospects, driven by expected iPhone sales and advancements in AI. Investors are encouraged to monitor these developments closely, as they could significantly influence Apple’s market performance in the coming months.
