Citi Raises Apple to Buy with $365 Target Amid Tech Rally
Apple Inc. (AAPL) has once again taken center stage in the technology sector, with a mix of strategic moves and market reactions capturing investor attention. Citi analyst Asiya Merchant initiated coverage on Apple with a buy rating and a target price of $365, citing the company's strong position in artificial intelligence, iPhones, and wearable computing. Merchant, who boasts a success rate of 76.7% according to TipRanks data, highlights Apple's dominance in multiple tech segments.
The market's focus on Apple comes amid broader tech sector developments. The Nasdaq Composite closed at a record high of 27,190.86, though the rally is heavily concentrated in a few megacap stocks like Nvidia and Tesla. Only about 25% of S&P 500 members are currently above their 200-day moving average, indicating a narrow market rally.
Investors are also keeping an eye on the performance of Apple's stock options. The AAPL 261005 300.00C option, for instance, shows a current price of $33.09, up 7.90% from the previous close. The option has a strike price of $300.00 and expires on October 5, 2026, with an intrinsic value of $33.69 and an extrinsic value of $100.
Beyond Apple, the tech industry is witnessing significant shifts. OpenAI's CEO Sam Altman is drawing regulatory scrutiny over AI risks, while the AI rally continues despite high Treasury yields. Stock funds are also reporting a 10.3% gain for 2026, reflecting positive investor sentiment in the broader market.