CNBC’s Jim Cramer said Monday that Apple’s latest surge, up nearly 9.95 points or about 4%, underscores why investors should own the stock rather than try to trade it and why the broader market followed its lead.

Apple helped lift the Dow by 1.12% points, the S&P 500 by 1.07% and the Nasdaq by 1.37%, fueled by three bullish analyst calls, including longtime Apple watcher Ben Reitzes at Melius Research, who Cramer noted been “has on board the whole way.” Apple hit a record high at the end of trading on Monday.

“As long as Apple makes the best products, people will buy them,” Cramer said.

Cramer highlighted the iPhone 17 lineup as proof of the tech giant’s unmatched product cycle. As Cramer discussed with Apple CEO Tim Cook last month, from the lightest version to the heavy-duty model, demand is strong and features like improved selfie technology make Apple devices stand out. Pricing stability, aided by trade-in values and carrier subsidies, reinforced Apple’s appeal, while the iPhone Air’s sleek form factor drew attention from consumers.

Cramer said the rally was foreseeable, but many investors were distracted by persistent negativity. Critics seized on employee departures to Meta, concerns about Siri, weaker China sales and incremental upgrades.

Analysts now see upside in China through 2026 and momentum across new devices, including a potential foldable iPhone next year. Reports from Evercore and Loop Capital highlight double-digit growth in Apple’s services and a multi-year phone cycle ahead, reinforcing the stock’s long-term potential.

Cramer noted the 1.5 billion iPhones currently in use and the enthusiasm that drives lines at product launches. Cramer also pointed to Apple’s leverage with partners like Alphabet who reportedly paid more than $20 billion to make Google the default search engine on iPhones, demonstrating how Apple can monetize its ecosystem without heavy investment.

He suggested Apple could take a similar approach with artificial intelligence, allowing chatbot developers to pay for iPhone integration, generating substantial margins without building its own AI model.

Cramer was critical of traders who tried to time Apple rather than holding it. Many sold when sentiment turned negative and re-entered after the stock had already risen, missing the bulk of the rally. Analysts, reporters and short-sellers, he said, contributed to that fear but are now being forced to raise their estimates in response to Apple’s momentum. Cramer also cited other misunderstood companies, like Salesforce and Amazon, to illustrate how Wall Street negativity often peaks just as fundamentals improve.

“If you used common sense,” Cramer said. “If you checked out prices from the phone carrier at Costco and you asked a salesperson for specs at an Apple store, then you had everything you needed to know why you should own, not trade, Apple.”