Apple (AAPL) shares have surged 19.6% in the past year, driven by strong iPhone 17 sales. Early data shows iPhone 17 outselling iPhone 16 by 14% in China and the US. Apple’s growing adoption of Apple Intelligence across its products is also boosting its performance.

iPhone sales in fiscal 2025 grew by 6.1% year over year to $49.03 billion, accounting for almost half of Apple’s total sales. Despite facing competition and other challenges, Apple expects double-digit growth in iPhone sales for the first quarter of fiscal 2026.

Apple’s recent updates to its Mac and iPad portfolio with M5 chip-powered devices are expected to enhance its prospects. Mac and iPad sales increased in fiscal 2025, but Mac may face tough comparisons in the first quarter of fiscal 2026 due to stiff competition in the PC market.

The Services segment is thriving for Apple, driven by an expanding user base and popular offerings like Apple TV+. Apple TV+ recently won 22 Emmys at the Primetime Emmy Awards, with a record-breaking 81 nominations this year.

While Apple’s stock has seen a significant increase, there are concerns about its valuation. The company’s stock is trading at a higher forward P/S multiple compared to its competitors. Stiff competition in various domains also raises questions about Apple’s future performance.

Despite its recent success, Apple’s stock is currently rated as a Hold. Prospective investors are advised to wait for a better entry point. The company’s outlook remains positive, but challenges in the market could impact its future growth potential.

Read more at Nasdaq: Apple Rises 20% in a Year: Is There More Room for the Stock to Grow?