Apple stock jumps 18% in 6 months due to strong iPhone sales

Apple’s stock has seen a nice uptick in the last six months, with an 18.1% increase compared to the Computer and Technology sector’s 10.2% return. The boost can be credited to the impressive sales of the iPhone 17, which saw a 23.3% year-over-year increase to $85.27 billion in the first quarter of fiscal year 2026, making up 59.3% of net sales.

One of the key drivers behind the strong iPhone sales has been the addition of new features to the iPhone lineup, including the Apple Intelligence tools and Apple Creator Studio. The Apple Intelligence features, now available in 15 languages, have been a hit with users, helping them to do more with their content on their iPhones. A recent collaboration deal with Alphabet is expected to further enhance these features.

While Apple has faced challenges with its AI initiatives in the past, the partnership with Alphabet is seen as a positive step forward. The addition of Google models, like Gemini, is expected to help Apple catch up with competitors in the AI space and drive demand for apps developed using Apple Intelligence.

Apple’s Services business is also on the rise, with strong growth in advertising, music, payment services, and cloud services in the first quarter of fiscal 2026. The company’s expanding games portfolio and the success of Apple TV+ have been contributing to the growth in this segment.

Looking ahead, analysts are optimistic about Apple’s fiscal 2026 earnings, with a projected 12.7% growth from the previous year. While Apple’s stock has outperformed Microsoft and Amazon, it has lagged behind Alphabet in the past six months. The stock is currently trading at a premium, but with a Zacks Rank #2 (Buy), it may be a good time to consider adding Apple to your portfolio.