Apple Stock Valuation Raises Concerns Amid Supply Constraints

Apple's stock price has surged to $319.70, marking a nearly 38% increase over the past year. Despite this impressive growth, analysts are warning that the company's valuation may be getting ahead of itself.

The tech giant reported its ninth consecutive earnings beat in Q3 FY2026, with revenue rising 16% year-over-year to $109.4 billion. iPhone revenue increased 22%, and Services hit a record high of $30.7 billion, up 12%. However, management has flagged supply constraints that will increase significantly across iPhone, Mac, and iPad.

Apple's valuation is a concern, with a trailing P/E of 36 and a forward P/E of 33, well above its historical range. The company trades at $319.70 against an average analyst target of $324.45, implying roughly 1.5% upside to consensus. This thin cushion has analysts recommending a hold on Apple stock.