Apple’s Stock Gaining Momentum: Goldman Sachs Reaffirms $266 Price Target

Apple's stock (NASDAQ:AAPL) has picked up more than a few bulls in recent weeks, with the price rallying 13% since the beginning of August. Goldman Sachs have added to that, reaffirming a Buy rating and $266 price target as anticipation surrounding its upcoming product event grows.

The firm’s analysis suggests that while Apple's September product events traditionally have limited immediate impact on stock performance, this year's event holds particular promise. Goldman Sachs points to anticipated form factor updates in the iPhone 17 models, the potential for a price increase on the iPhone 17 Pro, and ongoing carrier competition driving device promotions as key factors supporting future growth.

Goldman Sachs forecasts a 5% year-over-year growth in Apple's iPhone revenue for fiscal year 2025, with an acceleration to 7% in fiscal year 2026. These projections underscore the firm's belief in Apple's ability to maintain its strong position in the smartphone market.

Apple's annual fall event, scheduled for September 9, at the Steve Jobs Theater in Cupertino, California, is expected to showcase a range of new devices. These include updated iPhones—potentially featuring a slimmer “iPhone Air”—new Apple Watches, upgraded iPad Pros, and a faster Vision Pro headset.

More broadly, the event emphasizes Apple's commitment to integrating artificial intelligence across its product lineup, which is seen as crucial for maintaining a competitive edge in the rapidly evolving tech landscape.

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Elsewhere, it has been reported that Apple is exploring potential acquisitions of AI startups Mistral and Perplexity, or at the very least making some plans to integrate AI by way of a strategic partnership.

These discussions reflect Apple's strategic focus on enhancing its AI capabilities and closing the gap with competitors like Google and Samsung, who have made significant strides in deploying AI features. Additionally, Apple is reportedly in early talks with Google to integrate its Gemini AI technology into a revamped Siri voice assistant. This collaboration aims to significantly improve Siri's capabilities.

Despite these positive developments, Apple also faces some challenges. Berkshire Hathaway recently reduced its stake in Apple, selling $4 billion worth of shares in the second quarter of 2025.

This move, which follows previous sell-offs, reflects a continued shift away from Apple, despite it remaining the largest holding in Berkshire's $268 billion stock portfolio. Analysts attribute this to Apple's high valuation amid slower growth and ongoing U.S.-China trade tensions.

However, Apple's financial performance remains strong. The company reported a robust fiscal third quarter, earning $23.4 billion in profit on $94 billion in revenue. iPhone sales rose 13% to $44.6 billion, with a 4% revenue increase in China. These results exceeded analysts' expectations and led to a 3% rise in Apple's stock price in after-hours trading.

The integration of AI across Apple's products, particularly with the upcoming iPhone 17 designed specifically for Apple Intelligence, is expected to drive a significant upgrade cycle. This has led to analysts upgrading their ratings and raising price targets for the stock.

The combination of positive analyst sentiment, strategic AI initiatives, and strong financial performance suggests a potentially bullish outlook for Apple. While challenges remain, the company's commitment to innovation and its ability to adapt to changing market conditions position it for continued success.