Is Apple Inc. (NASDAQ:AAPL) Stock a Safe Buy At an All-Time High?

Apple Inc. (NASDAQ:AAPL) is clearly one of the most valued companies in the world, and it has also become clear that big-ticket tech firms have performed well during the coronavirus pandemic. On Wednesday, AAPL stock hit its all-time high of $354.77 a share and managed to hit a valuation of almost $1.491 trillion eventually.

What to Expect Going Forward?

It should be noted that due to work from home measures, thousands of people have been spending on new devices, and that has only helped companies like Apple. In the February-March phase, Apple’s stock declined primarily due to the supply chain issue. However, it bounced back in April.

Experts believe that there is still more upside in the Apple stock, and eventually, it could even hit a market cap of $1.5 trillion. Apple is all set to announce a switch to ARM chips from Intel chips in its latest Macs, and analysts are watching developments closely with regards to the impact on the stock.

On the other hand, another analyst has pointed out that Apple’s ability to manufacture its own chips in the house could also prove to be a massive competitive advantage. Amit Daryanani of Evercore ISI has stated that it is one of the aspects of Apple’s business, which is ‘underappreciated’ by the market.

He stated that if the entire Mac brand of products is run on Apple-designed ARM chips, it can generate margins of as much as 500 basis points over the long term. It is a well-known fact that sourcing products from other companies can often eat into the margin, and Apple’s capability of designing high-grade chips is a major boost for the company.

The company’s much-anticipated WWDC 2020 event is going to take place on June 22, and investors as well as analysts, are going to watch closely if Apple announces that it is going to drop Intel.

About Travis Garlick 1791 Articles
Been writing about and trading stocks since 2013. Manage a group of micro-cap investors on Facebook with over 15,000 members. Turned $8,500 into 185k the first year I started trading stocks and haven't looked back.