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A hopefully profitable move away from Intel, announced by Apple CEO Tim Cook, has pushed the company’s stock to a new all-time record high. Today in the pre-market, AAPL managed to hit $370.
Apple Inc (NASDAQ: AAPL) stock has hit a brand new record high. The company, which struggled to retain its market stability in the heat of the coronavirus pandemic, is seeing more than a turnaround. On Tuesday, June 23, Apple stock hit $366.55, bringing the tech giant to a new all-time high. But today in the pre-market, AAPL is moving even higher, hitting $370.
Apple stock’s move above $366 and further not only gave the company a new record high but also pushed Apple’s market cap to $1.585 trillion. With the increase, Apple has now become the most valuable company in the U.S. Furthermore, Apple is now the second-best performer on the Dow, only behind Microsoft Corporation (NASDAQ: MSFT), which has pulled over 28% in 2020.
Apple Stock Record
Although it’s now with a premarket value of $364.01 after losing 0.69%, AAPL has been trading in green on average, for about a year. In the last month, AAPL has climbed 15.22% with bigger gains of 49.29% in the last three months. Apple stock’s 2020 gain sits at 24.92%, with a total of 83.45% in the last 12 months.
Apple stock has mostly been on the rise since the company released the iPhone SE back in April. At the time, AAPL was trading slightly above $275. The market has mostly considered the iPhone SE as a cash cow for the company. This is mostly because the iPhone SE is a cheaper and more affordable version of the regular high-end and expensive Apple products.
Apple Dumps Intel Processors
On June 22, the company began its 2020 Apple Worldwide Developers Conference (WWDC). The event already made a few revelations, including the new iOS 14. The clincher for Apple’s stock was a keynote address by Apple CEO Tim Cook. The CEO, among other things, announced that Apple was shifting away from Intel chips. From the end of 2020, Apple intends to start shipping new Mac computers, using in-house chips. Cook said Apple believes that the move will increase Mac’s general efficiency, including better processing speed and optimum battery consumption.
Apple also hopes that the shift away from Intel chips would help improve the company’s profit margins. Basically, if the company no longer has to spend heavy amounts on Intel processors and can produce them itself, the profit would increase. Increased profits would also bode well for shareholders and other investors of the company. Apart from the possibility of some dividends, the stock price itself could soar as the company becomes stronger.
Despite the news, Intel Corporation (NASDAQ: INTC) stock did not plunge, rising 0.79%, to close at $60.
Several of the WWDC announcements have improved the outlook on Apple stock. Analysts are now a lot more bullish and have raised their targets on AAPL up to $400 per share. If Apple continues on this trajectory, a 20% increase will push the company to a $2 trillion market cap. AAPL share price would also climb over $461.