$10,000 Invested in Apple Could Be Worth This Much by 2031
Apple’s best days might be behind it, but that doesn’t mean it’s no longer a stock worth buying.
If you had invested $10,000 in Apple stock 30 years ago, the company's growth over time could have turned that sum into a significant fortune today. However, recent challenges such as tariffs, antitrust lawsuits, and a CEO change have posed headwinds for the tech giant. To assess Apple's potential worth in five years, let's examine the current trends and the company's growth drivers.
The iPhone remains Apple's key product, with sales increasing 16% year-over-year to $109.4 billion in the third quarter of its 2026 fiscal year. Despite the iPhone losing some of its past appeal, the device remains a crucial growth catalyst. Two reasons suggest Apple could continue outpacing the market: its focus on AI-driven features and its foldable phone initiative.
First, Apple is leveraging its large user base to develop and scale AI-powered capabilities, which could significantly boost iPhone sales. Additionally, Apple's entry into the foldable phone market may tap into a new growth opportunity, although its initial success remains uncertain. Apple's services segment, which boasts over 2.5 billion active devices, is expected to drive further growth.
With a larger customer base, the company could accelerate services sales and improve margins, given the higher gross margins within this segment. Despite recent difficulties, Apple has managed its challenges well, posting strong financial results and showing resilience. As such, I anticipate Apple's earnings per share (EPS) to grow significantly over the next five years, potentially at an average rate of 13%.
Apple's current forward price-to-earnings (P/E) ratio of 35.2 is higher than the technology sector average of 20.2, but the company's strong earnings, free cash flow, and long-term prospects may justify this premium valuation. If Apple's forward P/E declines to 32 by 2031, the stock could generate an annualized return of approximately 10.87% over the next five years, turning a $10,000 investment into roughly $16,752, not including dividends reinvested.
While these projections are subject to change based on various factors, Apple appears well-positioned to deliver competitive returns over the coming years.
Written by urgent.news from Motley Fool's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
