$3 trillion! Will Apple's market capitalization stop here in 2022?

Overnight, the US stock market ushered in the opening of 2022, the three major stock indexes all closed higher, at the same time, the technology giant Apple (NASDAQ: AAPL) jumped to the $3 trillion market value mark, becoming the world's largest company.

Founded in 1976, it took 44 years to reach $1 trillion for the first time in 2018, and two years later, in August 2020, the stock jumped to $2 trillion, and now, in just 15 months, Apple's stock price has stood at $3 trillion.

(AAPL weekly chart from the Investing.com of The Fortunes)

According to the market information of Yingwei Financial Investing.com, Apple's stock price rose by 81% in 2020 and rose again by 34% in 2021. Even in 2021, a time when U.S. tech giants are under the most pressure, Apple stocks have shown astonishing resilience. Given the impact of the global supply chain crisis on Apple in 2021, this excellent performance is indeed incredible.

A variety of factors have jointly boosted Apple's stock price to stand on the current high ground, and Wall Street investors want to figure out more about how long Apple will stay at the level of 3 trillion yuan in market value, and whether the future market is Zhang or down?

Demand is booming! Will Apple's performance go to the next level?

From a fundamental perspective, Apple's most recent earnings report showed that the company's revenue was $83.4 billion for the fourth fiscal quarter ended Sept. 30, up 29 percent from last year.

Among them, iPhone sales are still far ahead, as high as $38.9 billion, up 47% year-on-year, while service revenue of $18.3 billion, an increase of 26% year-on-year; in addition, Apple Mac computer sales are $9.2 billion, iPad sales are $8.3 billion, wearable devices (Apple Watch and AirPods) sales are $8.8 billion.

That said, while the world has begun to gradually return to normal, the demand for Apple's other devices is still strong, especially the iPhone, Mac and iPad.

Previously, market analysts believed that the iPhone 13 would be just a transitional model, and its importance was far less important than the iPhone 12, which was Apple's first 5G phone. But, as always, Wall Street has once again underestimated the magic of the iPhone — especially in China, where demand has been at historic highs since its launch , which also provides the potential for Apple's results to create new surprises in the December quarter.

Wall Street analysts currently expect the company's revenue to reach $382 billion in the fiscal year of September 2022, and it could exceed the $400 billion mark in fiscal 2023.

The king of innovation! Will Apple be the biggest winner in the metaverse?

Investors also need to focus on the innovative power of Apple's products — Apple's AR/VR headsets and the possible launch of the car are imminent , and these expectations should be added to the company's valuation.

Well-known Apple analyst Mingxi Guo, who previously wrote a series of research reports on Apple's AR/VR helmet devices, believes that Apple's AR/VR helmet sales in the next decade are expected to reach 1 billion units, "these gadgets will eventually encroach on the iPhone market and become the main online device for many people." ”

In addition, Bernstein analyst Toni Sacconaghi also previously reported on the status of Apple's meta-universe industry, asserting that the access hardware of the virtual world will be in the hands of a few large technology companies, just like the current PC, mobile phone and tablet markets. The analyst estimates that by 2030, AR/VR headset devices will account for about 4% of Apple's revenue, and by 2040 it is expected to exceed 20%.

Summary

Finally, investors need to note that Apple has become one of the most important safe-haven stocks in the U.S. stock market. Whether it's its steady stream of innovation, its legion of fanatical loyal users, or Apple's years-long-standing shareholder return program, it's all about proving that Apple is a tech stock worth holding for the long term.

Apple has also gained legal support after a U.S. federal court suspended a ruling that allowed Apple to eliminate the need for developers to add payment systems other than Apple Pay to its app. The longer this legal dispute drags on, the better, and for Apple, of course, it is more willing to maintain the status quo.

Morgan Stanley analyst Katy Huberty previously reiterated Apple's buy rating, raising its price target from $165 to $200, at which apple's market capitalization would reach $3.3 trillion.

Author: Li Yingwei