Since it first purchased Apple (AAPL 1.93%) shares in early 2016, Berkshire Hathaway has registered a fantastic gain on this investment. It's arguably one of Warren Buffett's best capital allocation decisions in recent memory, an idea that worked out extremely well for the Oracle of Omaha.
Maybe there are more gains ahead, even though Apple is a gargantuan enterprise that sports a $3.8 trillion market cap. Can Apple stock reach $350 per share in 2026? Here's how investors should be thinking about this company as we look toward the rest of the year.
Image source: Getty Images.
Huge gains aren't out of the ordinary
If this "Magnificent Seven" stock ended up at $350 per share by the end of 2026, it would need to rise 35% over the next 11 or so months from its current price of $260. Given the company's stellar track record at compounding capital, investors might believe there is a good chance that this will actually happen.
The stock had huge returns of 34% in 2021, 48% in 2023, and 30% in 2024. In the past decade, Apple's share price has rocketed 942% higher (as of Jan. 15). This translates to a compound annual rate of 26.4%. This performance is much better than what investors would have achieved by owning an S&P 500 index fund.
Right now, Apple is trading 9% below its peak. The recent weakness could make investors think that there is near-term upside should market sentiment shift toward optimism.
Apple's downside risk is clear
Apple is a high-quality company. Investors would not argue with this statement. Apple has one of the most valuable brands, supported by its popular hardware devices that mesh seamlessly with its software and services. They combine to create Apple's powerful ecosystem, while also providing an exceptional user experience.
The company's quarterly gross margin has averaged 30.6% in the past five years. There is pricing power in the business model, as consumers look to buy the newest products when they get released.
This translates to significant earnings. Apple reported $112 billion in net income in fiscal 2025 (ended Sept. 27). And there are copious amounts of free cash flow being generated that help fund dividends and share repurchases.
The one knock investors will have is that the valuation is expensive, which introduces a clear downside risk. Buying the stock today requires you to pay a price-to-earnings (P/E) ratio of 34.7. In the past 10 years, the P/E multiple averaged 24.6, so the current setup looks steep based on historical trends.
The sell-side analyst community appears to not be factoring the elevated valuation into their thinking. The consensus one-year price target for Apple is $288. This implies 11% upside from the current price.
NASDAQ: AAPL
Key Data Points
Key catalyst investors should pay attention to
One possible tailwind that can drive the stock markedly higher is the growth potential of Apple's products segment, at least to a point that is better than the market is expecting. More specifically, investors will certainly be happy to see strong iPhone sales growth, which was the case in the fourth quarter of 2025, when revenue for this product line was up 6% year over year. The leadership team expects iPhone sales to grow double digits in the first quarter of fiscal 2026.
Apple just announced a partnership with Alphabet that will see the former utilize the latter's Gemini artificial intelligence (AI) models. If this tie-up bolsters the company's Apple Intelligence offerings enough that it spurs demand from a lot of consumers to buy the newest hardware, then it can result in positive momentum for the stock price.
It's best to temper expectations, though. While I believe Apple will post solid revenue and profit growth, it won't register outsize gains, especially since its devices are already ubiquitous. Therefore, I believe there is a much lower than a 50% chance that Apple shares climb 35% to $350 before this year is over.
