Apple (AAPL) Stock Price Breaks Above $327 After China AI Win; Can the Rally Continue?

Quick overview

Apple (NASDAQ: AAPL) surged after China approved Apple Intelligence. Here’s why the AI rollout could become Apple’s biggest growth catalyst ahead of earnings. Apple (NASDAQ: AAPL) didn’t surge in anticipation of robust iPhone sales. Instead, it appears that investors have finally realized what was perhaps always known: Apple’s biggest opportunity with AI just got a whole lot bigger.

With China’s cyberspace regulator now giving the green light to Apple Intelligence, the company is one step away from bringing its AI platform to one of its critical markets. Consequently, shares hit an all-time high of $327.50. With earnings set to be announced on July 30, the question on everyone’s mind is if AI will be the next big growth driver for Apple, or if we can forget the iPhone entirely.

Apple Could Have Just Upended Its Narrative With China

For months, Apple was falling behind its Chinese competitors like Huawei and Xiaomi who had already started rolling out AI-powered smartphones. However, that’s all about to change. Apple is allowed to use the technology thanks to partnerships with Chinese cloud giants Alibaba and Baidu. This comes at the perfect time considering Apple is also seeing renewed growth in China.

After a slow start to the year, Apple reported a 20% increase in iPhone shipments in the first quarter of 2026 and a 24% rise in Q2. This is while its overall smartphone market remains weak in the country. For shareholders, the approval for AI features is another way for Apple to get Chinese customers to buy its product.

Apple’s Business Is Solid With or Without AI

It’s still early 2026, and Apple is already on a strong run. Revenue in the March quarter hit a record $111.2 billion, while EPS surged 22% to $2.01. The company had over $28 billion in operating cash flows and its installed base was at a fresh high across all its main businesses. But the market is already aware that Apple is making a killing.

Now the real question remains as to if Apple Intelligence can get another boost in its roughly 2.5 billion active user base. If there’s enough innovation that it improves Siri’s usability, this will be another major reason for Apple users to buy its hardware.

Apple could also grow its Services segment, which is a key component of the company’s overall ecosystem. However, execution is the big question mark here. Apple Intelligence is behind its AI counterparts in OpenAI and Google. Furthermore, many Siri capabilities have already faced delays.

Shareholders Don’t Just Care About iPhone Sales

Apple’s Services business is still another huge competitive advantage that it can boast with. Another record quarter was registered across its App Store, iCloud, Apple Music and subscriptions business. In terms of shareholder returns, the Cupertino-based company has also announced an additional $100 billion buyback program and also increased its quarterly dividend by 4%. Ahead of its upcoming July 30 earnings report, investors are asking several questions:

• Will iPhone upgrade cycle in China pick up in the next quarter thanks to Apple Intelligence?

• Will Services continue to grow at double-digit rates?

• Can Apple expand its AI capabilities and maintain healthy margins?

This could determine if Apple’s recent rally has more upside.

Apple Stock Price Forecast: Bulls Are Still On The Bull Run After Record Breakout

Apple (NASDAQ: AAPL) stock is currently trading near $327.50 per day, following a decisive breakout above its $317.31 resistance, confirming the continuation of the bullish trend from the previous double-top formation.

The bullish candlestick pattern along with the price trading well above the 50-day exponential moving average (EMA) around $297.64 and the 200-day EMA around $272.58 supports the bullish thesis. The relative strength index (RSI) sits near 69, a strong bullish sign, indicating the stock is approaching overbought levels.

Although this can lead to near-term consolidation, it can still be profitable as long as the price remains above the breakout level. The immediate resistance level is at $329.45, with the next major levels at $340.26 and $351.28. The first support level is at $317.31, with significant buying interest expected at $300.30 should we witness a further pullback.

So, as long as AAPL trades above $317.31, a move to $340 and then to $351 remains the technical call, whereas breaking below the breakout level could cause further pullbacks before the primary uptrend resumes.

Key Takeaways

• China approving Apple Intelligence clears the way for Apple’s AI to take off there.

• AI is the next big upgrade cycle for iPhone users in China.

• Apple’s Services business and $100 billion buyback program are both strong fundamentals.

• Holding above $317.31 keeps the bullish bias intact with upside to $340 and $351.

ABOUT THE AUTHOR See More

Arslan Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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