Shares of Apple (AAPL) and Broadcom (AVGO) both posted fresh intraday highs on Wednesday, extending a rally that has been fueled by a mix of strong product momentum and growing demand for artificial‑intelligence (AI)‑enabled hardware.
Apple’s smartphone resurgence – Counterpoint Research released a forecast that Apple is on track to overtake Samsung as the world’s top smartphone vendor in 2025, a milestone the company has not achieved in more than a decade. The forecast projects Apple to ship roughly 243 million iPhone units next year, compared with Samsung’s 235 million. The lift is being driven by the successful launch of the iPhone 17 series, which has already delivered a 10 % year‑over‑year increase in shipments for 2025.
While shipments differ from final retail sales, they are a reliable barometer of market demand and provide early insight into revenue trends. Counterpoint expects Apple to capture 19.4 % of the global smartphone market in 2025, edging out Samsung’s 18.7 % share.
Industry analysts remain bullish on Apple’s outlook. Jim Cramer has referred to the iPhone 17 as “an unbelievable value” given aggressive trade‑in offers and carrier subsidies. The device’s strong performance helped push Apple back into the exclusive $4 trillion market‑cap club last month, reinforcing the narrative that premium hardware can still drive sizable market value.
AI strategy – the missing piece – Despite the hardware strength, Apple’s AI roadmap remains less transparent than that of its rivals. The company has yet to fully deliver on a conversational Siri experience, a long‑awaited upgrade that could spark a new upgrade cycle. However, Apple’s massive installed base—over 2 billion active devices—positions the firm as a natural AI partner for developers seeking scale without the need for massive data‑center investments. Monetizing AI through services such as iCloud, Apple TV+, and the App Store could add incremental revenue streams while leveraging the company’s existing ecosystem.
Given the iPhone 17’s strong start and Apple’s continued focus on premium pricing, the stock is poised to test new highs through the remainder of 2025, provided the company can clarify its AI vision and bring differentiated software experiences to market.
Broadcom’s AI tailwinds – Wall Street turned its attention to Broadcom after Goldman Sachs raised its price target to $435, up from $380, while maintaining a buy rating. The investment bank highlighted “strong momentum driving upside to AI revenue” in 2026, anticipating a 128 % year‑over‑year increase in AI‑related sales for fiscal year 2026.
Broadcom is slated to report its fiscal 2025 fourth‑quarter results on December 11. Analysts expect the quarter to benefit from robust spending by hyperscale cloud providers, who continue to expand AI‑focused infrastructure. Broadcom’s role as a co‑designer of Google’s custom Tensor Processing Units (TPUs)—the silicon powering Google’s Gemini 3 model—underscores its strategic position in the AI supply chain.
In addition, reports that Meta Platforms is evaluating Google TPUs for its data centers beginning in 2027 provide further upside potential for Broadcom’s custom‑chip business. As the Big‑Tech cohort ramps up capital expenditures for AI compute, Broadcom’s networking and ASIC portfolios are likely to see elevated demand, supporting the club’s “own, don’t trade” thesis on the stock.
The investment club assigns Broadcom a hold‑equivalent “2” rating with a target price of $415, reflecting confidence that the stock can continue to appreciate even as it trades near record levels.
Bottom line – Apple and Broadcom illustrate two complementary pathways to growth in the AI era: Apple by leveraging a premium hardware ecosystem and a massive user base, and Broadcom by supplying the critical silicon that powers the AI engines of the world’s largest cloud providers. Both companies are positioned to capture upside from accelerating AI adoption, though Apple must articulate a clearer AI product strategy to sustain its momentum, while Broadcom’s earnings outlook will be closely tied to the pace of hyperscale spending in the coming quarters.
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