Apple’s AI Rally Puts Valuation at Risk of Outpacing Reality

  • Shares trade at level the stock has struggled to sustain
  • Investors question when AI plan will show up in earnings

Wall Street expects Apple’s revenue growth to tick back up in the second half of 2024.

Photographer: Annice Lyn/Getty Images
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Apple Inc.’s record-breaking rally has invited skepticism as to whether its artificial intelligence strategy justifies the stock’s valuation.

The shares surged to a fresh all-time high last week, briefly taking Apple back above Microsoft Corp. as the world’s most valuable company after it unveiled new AI features that investors hope will spur a massive upgrade cycle among users.