Predicting Apple's Stock Performance Over the Next 3 Years

Apple, the tech giant, is set to continue its journey of self-reliance by developing more first-party chips. This move aims to reduce its dependence on third-party chipmakers such as Qualcomm.

The company's growth strategy doesn't end there. Apple is also planning to introduce a more affordable Vision Pro, expand its smart home and wearable products lineup, and upgrade its AI ecosystem.

However, not all news about Apple has been positive. Berkshire Hathaway, the renowned investment firm, sold off its Apple shares over the last two years due to concerns about overvaluation and potential market volatility. These stock disposals raised eyebrows, as they were seen as red flags indicating possible doubts about Apple's future growth and profitability from a major, trusted investor.

Despite this, Apple's iPhone sales have been on the rise. The company reported a double-digit growth in its top emerging markets, including India, the Middle East, South Asia, and Brazil.

In fiscal 2025, Apple's iPhone sales surged significantly, driven by strong demand for the iPhone 16's top-tier Pro models.

Looking ahead, if Apple manages to meet certain growth estimates and trades at 32 times earnings, its stock could rise about 30% to $308 over the next three years.

Apple has also taken steps to boost sales in China. The company cut prices in the country to benefit from a 15% subsidy on purchases of smartphones, tablets, and smartwatches under 6,000 yuan ($840).

Analysts predict that Apple's revenue and EPS will increase at a Compound Annual Growth Rate (CAGR) of 6% and 13%, respectively, from fiscal 2024 to fiscal 2027.

Rumours about Apple's future product designs have been circulating. The latest suggests that the company will overhaul its design with the iPhone 17 this year and potentially release foldable or curved iPhones in 2026 and 2027.

As of its latest quarter, Apple ended with a substantial cash reserve of $133 billion in cash and marketable securities.

In a less optimistic note, The Motley Fool Stock Advisor analyst team did not include Apple in their list of the 10 best stocks for investors to buy now. However, the tech giant's continued innovation and strong financial performance suggest that it remains a significant player in the tech industry.