Apple's Valuation Hits Dangerous Territory

Apple's stock has been on a tear in 2026, rising nearly 25% so far. This outperformance is notable, especially compared to other AI investments like Nvidia.

However, there's a red flag that investors should be aware of. The company's valuation is getting out of control, and it may soon cross the 40 times earnings threshold once again.

This level of valuation was seen in the mid-2000s, in 2021 during the COVID-19 lockdowns, and at the end of 2025. Each time, the valuation promptly crashed after reaching this peak.

Currently, Apple is trading at a much higher price than its peers, despite growing at a slower rate. Nvidia, for example, trades at a lower price despite growing faster.