AAPL Stays Near 52-Week High Despite Valuation Pressure

Apple's stock price remains close to its 52-week high of $335 after rebounding from August lows. As of September 17, AAPL is trading at around $332.7, providing solid fundamental support with third-quarter revenue rising 16% year over year to $109.4 billion and diluted EPS increasing 29% to $2.02.

The company's latest earnings continue to drive the stock price, despite concerns about valuation pressure. With a gross margin of 50.1%, Apple is seeing significant growth in its iPhone, Mac, and Services segments. However, roughly 2 percentage points of this improvement came from tariff-related payment refunds.

As investors shift their focus to the September product cycle, Apple's new AI capabilities become increasingly important. The rollout of iOS 27 and updates across other platforms brings a new generation of Apple Intelligence, including deeper integration with personal context and system apps. This could strengthen the appeal of the new iPhone cycle through both hardware upgrades and AI features.

However, regional availability and regulatory requirements may complicate the potential contribution of AI to device sales and Services revenue. Siri AI is not yet available on iPhones, iPads, or Apple Watches in the EU, while certain features remain unavailable in China due to regulatory restrictions.