Apple pulls back after reaching new highs

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Anton Kharitonov

1 hour ago

Apple pulls back after reaching new highs — Apple

Following the May rally and a breakout above the all-time highs near $315, Apple shares have entered a correction phase and are now trading around $310. The decline still appears to be more of a profit-taking move rather than a trend reversal, as investors reduce positions ahead of WWDC 2026, where the company is expected to validate high expectations around artificial intelligence and its new Apple Intelligence strategy.

AI remains the key driver, but expectations are very high

The market has effectively priced in a successful AI scenario. The main focus is on the updated Siri, potential integration with Google Gemini, expanded support for third-party models, and deeper AI integration across the iPhone, iPad, and Mac ecosystem. Morgan Stanley considers WWDC a key catalyst for re-rating Apple as one of the leaders in the AI cycle, while Bank of America recently raised its price target to $380.

Why the stock is declining despite a positive outlook

The current pressure is not due to business deterioration, but rather the risk of overinflated expectations. After gaining more than 15% in May, many market participants are choosing to lock in profits ahead of the event. UBS maintains a neutral stance and warns that without truly groundbreaking AI announcements, the conference may not be strong enough to drive a new upward impulse. Additional uncertainty comes from questions around AI monetization and regulatory risks in certain international markets.

Key takeaway for investors

In the short term, Apple shares are in a consolidation phase after reaching fresh highs. The next few days could determine the direction for the summer: a convincing demonstration of AI capabilities could push prices back toward all-time highs and support further growth, while a lack of notable surprises increases the likelihood of a deeper correction following the strong May rally. For now, the market is less focused on Apple’s financials and more on its ability to prove it can become one of the main beneficiaries of the next stage of AI development.

Near-term outlook

Although AAPL has not gained sufficient momentum after breaking resistance around $312, the chances of breaking current highs and moving toward $320–330 remain high as long as the price holds above $305–300. A loss of the $300 level, as previously noted in Apple updates highs after strong bounce from $305 support, would likely trigger a move toward $290–280.

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