Artificial intelligence is driving tech growth, with the global market expected to reach $244 billion by 2025. Apple shares rose by 11.58% in response to strong third-quarter results and increased interest in its “Apple Intelligence” features. CEO Tim Cook hints at new AI products and possible acquisitions to strengthen Apple’s offering.

Although Apple is benefiting from AI investment, its stock is still down 11% from its 52-week highs due to concerns around tariffs and supply routes. Apple’s upcoming launch of new AI-powered devices and software could be a turning point for the company. The focus is on whether AAPL stock will regain momentum or caution should prevail.

Apple’s strategy of combining hardware, software, and services drives steady demand for its products. The company saw a small gain of under 2.5% in the last 52 weeks but slipped almost 8% this year. Apple’s valuation is ahead of the sector, with a forward P/E ratio of 31.3x compared to the sector’s 23.7x average.

Apple’s recent quarter showed strong fundamentals with revenue up 10% year-over-year to $94 billion and diluted EPS up 12% to $1.57. The company reported net income of $23.43 billion, with iPhone revenue at $44.58 billion, Mac at $8.05 billion, iPad at $6.58 billion, and Services at $27.42 billion, a new all-time record.

GlobalFoundries and Apple are expanding collaboration on U.S. semiconductor tech to accelerate AI hardware for mobile computing. Apple’s $100 billion commitment to bringing the supply chain onshore supports this effort. Partnership with Coherent secures advanced photonics, strengthening control over key features like Face ID.

Analysts expect EPS of $1.73 for the September 2025 quarter and $7.33 for FY2025, aligning with 8.59% year-over-year growth. While some analysts raise targets based on improving revenue trends and AI focus, others like Needham cite slower innovation and regulatory concerns, with a consensus “Moderate Buy” rating and a mean target of $235.56.

Read more at Yahoo Finance: As Apple Preps to Unveil AI Products, How Should You Play AAPL Stock?