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Apple ended 2024 on a strong note, with its stock price rising to an all-time peak of $259.02 on Dec. 26, 2024, for a total yearly gain of 33%. On the other hand, the tech-heavy Nasdaq-100 climbed only 25.9%. 

Apple’s massive gains pushed its market value closer to an unprecedented $4 trillion milestone. A surge of this size often draws more attention from investors and the general public alike, making them wonder if Apple stock remains a good buy in 2025.

Read on to find out what led to Apple stock’s success in 2024, along with a financial analyst’s prediction about its 2025 performance.

What Drove Apple’s Strong 2024 Performance?

In 2024, Apple did so well simply by selling a wide range of tangible products with a consistently high profit margin, leading to actual profits. 

Various tech companies, like Google’s parent company Alphabet, are chasing the AI dream and investing almost all of what they earn into data centers and Nvidia chips. Apple, on the other hand, remains more cautious, focusing its efforts on its product line. Consistent product sales, especially those of the iPhone line, continue to drive revenue. Services like the App Store, Apple Music and Apple TV+ have also become important sources of steady income for the company.

In the fourth fiscal quarter of 2024, Apple reported a record-high quarterly revenue of $94.9 billion, up 6% year over year. These factors, combined with Apple’s brand image, likely strengthened investor trust during 2024 — a year filled with wide fluctuations in the stock market.

An Analyst’s Take on 2025 Apple Stock Performance 

JR Research — a top-tier TipRanks investor and financial analyst — has strong opinions on Apple’s stock outlook. The investor believes that while Apple may not always produce rapid, explosive growth, it will remain a stable player in the tech industry. Apple’s approach is rooted in integrating hardware, software and services that maintain customer loyalty, not in trying to wow the world with groundbreaking gadgets each quarter.

The investor also sees Apple’s involvement in artificial intelligence (AI) as a thought-out strategy focused on investment in AI infrastructure without overspending. The launch of Apple Intelligence, paired with the release of the iPhone 16 line, is a sign of this strategy. Specifically, Apple is adding AI features in ways that make sense for its ecosystem rather than flooding the market with expensive projects.

JR Research noted that Apple’s current valuation, however, remains higher than that of its peers. Apple’s forward EBITDA multiple is estimated at 27x — around 70% higher than that of similar companies in the tech sector. An elevated stock price can raise concerns about how much higher it can realistically climb.

Yet, around the end of the year when this was going on, the investor advised to “buy aggressively on steep pullbacks.” If Apple’s stock price suddenly dips because of short-term market events, as it has off and on throughout 2025 so far, that’s the time to buy shares. However, this doesn’t mean the stock will go up right away.

Take This Advice With a Grain of Salt

JR Research’s statement about buying aggressively during steep pullbacks should come with a few caveats.

Pullbacks aren’t always temporary. Despite Apple’s strong track record, a sudden dip in its stock might be the start of a longer decline, especially if there’s an underlying reason, such as a drop in the demand for Apple products. Investors who buy too early could face losses if the stock keeps dropping.  

The high valuation remains a concern. If Apple misses its earnings targets or if consumer demand slips, its stock might decrease sharply. Another concern is that Apple’s attempts to find the “next big thing” haven’t always met with unqualified success. Apple TV+, for example, remains a smaller service amid a market dominated by giants like Netflix or Amazon Prime Video. If Apple overextends or invests in new ventures that flop, investors may lose patience.