How much would a $1,000 investment in Apple stock 10 years ago be worth today
Nvidia stock may have gotten some attention of late, but there are plenty of others that are outperforming the broader market. The other is another member of the so-called Magnificent Seven tech stocks: Apple.
A $1,000 investment in Apple in June 2014 would be worth more than $10,460 at Tuesday’s closing price of $209, according to calculations from Morningstar Direct. That’s over 946% growth, and an annualized return of 26.46%. (Shares on Thursday were much lower, trading around $214 at 3 pm ET.)
That’s not exactly the explosive growth Nvidia has experienced in recent months, but it’s still far ahead of the S&P 500 over the same period. And if you were lucky enough to get in on AAPL’s launch in the late 1980s, that $1,000 investment would be worth more than $2.1 million today, with an annualized return of 19.22%.
Apple is one of seven stocks—in addition to Alphabet, Amazon, Microsoft, Meta, Nvidia, and Tesla—that pushed the stock market to record highs in 2023 and 2024. That being said, he was one of the weakest players on the team. in recent months, earnings rose 1% in the latest quarter and sales declined.
‘Important innovation’
Still, Bank of America rates Apple a buy, writing in a research note published this week that the company’s recent introduction of AI capabilities, called Apple Intelligence, and the announcement that it will give third-party developers access to many AI features “should it has led to significant new construction. from engineers.”
“We view conversational AI with context and privacy as key to monetizing the installed base of Apple devices over time through increased productivity, higher-value apps, increased subscriptions and payments from partners,” BofA’s Wamsi Mohan wrote in a report.
Mohan also points to the potential increase in consumers upgrading their iPhones in the coming years—gaining access to new AI features that are still being developed—and Apple’s ability to expand its services and other offerings as reasons to invest. In a best-case scenario, existing customers will rush to upgrade their phones and iPads to access AI, and those loyal to other apps may switch.
On the other hand, softening consumer spending can generally impact the company, which could lead to weaker sales of the iPhone 15 — and longer iPhone replacement cycles in general. Customers may not be interested in Apple Intelligence features, and demand may change after initial interest wanes. Mohan also points to two ongoing antitrust cases in the US that could have a negative impact on the company, among other concerns.
Also at play: Because the S&P 500 is market-weighted, the movements of companies like Apple and the rest of the Magnificent Seven—up or down—can have a big impact. That has led some analysts and financial advisers to warn that the tech giants may be overextended, which could affect retail investors who put more money into index funds.
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