Apple’s AI surge puts valuation at risk of outpacing reality

Apple Inc.'s record-breaking rally has sparked debate over its valuation, driven by new AI features expected to boost user upgrades. The stock hit an all-time high, surpassing Microsoft briefly. However, with a valuation at 30 times forward earnings, scepticism remains. While investors anticipate revenue growth by 2025, some, like David Daglio, advise caution. JPMorgan sees potential, but others prefer alternatives like Microsoft and Amazon.

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By Carmen Reinicke and Ryan Vlastelica

Apple Inc.'s record-breaking rally has invited skepticism as to whether its artificial intelligence strategy justifies the stock's valuation.

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