Please ensure Javascript is enabled for purposes of website accessibility

Why Apple Stock Climbed to a New All-Time High Today

By Joe Tenebruso – Updated Dec 7, 2021 at 12:30PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Investors are growing more bullish on the tech titan's growth prospects.

What happened

Shares of Apple (AAPL -1.23%) rose 3.5% to a record closing price of $171.18 on Tuesday, after an analyst placed a price target on the stock that represents a new high among Wall Street's estimates.  

So what

Morgan Stanley analyst Katy Huberty now sees Apple's shares rising to $200, up from a previous forecast of $164. If she's right, investors could enjoy gains of roughly 17% from today's price.

A person is pointing to a rising stock chart.

Image source: Getty Images.

Huberty sees Apple's share price rising as traders seek out high-quality companies that are thought to be safer investments, now that volatility has returned to the financial markets. She also expects Apple's supply chain challenges to abate in the coming quarters, thereby helping to drive iPhone sales higher.

Additionally, Huberty argues that Apple's current stock price does not fully reflect its ability to innovate. The tech giant is reportedly developing augmented reality products and self-driving vehicle technology, which could boost demand for its shares among investors ahead of their expected launch dates.

"As we get closer to these products becoming a reality, we believe [Apple's] valuation would need to reflect the optionality of these future opportunities," Huberty said. 

Now what 

Few companies match Apple's track record of innovation. Time and again, Apple has created game-changing products that have gone on to capture the lion's share of their industries' profits.

It's entirely possible that Apple could do so again in the realms of augmented reality and autonomous vehicle technology. In turn, it's conceivable that Apple's share price will ascend to Huberty's $200 price target -- and perhaps even higher -- in the coming year.

Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Apple. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.