Jim Cramer Says "Apple Deserves a Premium Multiple Given How Great It Is"

Apple Inc. (NASDAQ:AAPL) is one of the Magnificent Seven stocks Jim Cramer recently reviewed. Cramer noted how the company proved the doubters wrong, as he remarked:

“Apple’s next up… It only went up about 9% last year. This one’s different. Apple stock was beaten down in early 2025 because of the same worries we always hear about: can their growth re-accelerate? Will iPhone sales be weak? Will the China business ever turn around? And of course, last year, we also got the tariff worries with President Trump going after their two key sources of manufacturing, China and India. Ultimately, Apple took those tariff concerns off the table by announcing a massive domestic investment agenda that won the company some key exemptions and won over the president, and the stock came roaring back.

Apple also helped itself by posting several strong quarters with sales growth accelerating over the course of the year. But what really got this stock going this fall was the iPhone 17 launch. We all heard it was going to be weak from Wall Street over and over and over again. It was a huge hit. Plus, when Wall Street decided to start worrying about all the spending on AI data centers, the guys at Apple suddenly looked like geniuses for not getting involved in this game.

Remember, people thought they were doofuses before this. You know where I come down on Apple, as always I say own it, don’t trade it… I think the strong iPhone cycle can continue and it wouldn’t surprise me if Apple can sign a big deal to get billions of dollars in exchange for making some generative AI platform the default on the iPhone… Stock has quietly pulled back over 9% from its early December all-time highs, currently trading at 32 times this year’s earnings estimates. It’s not cheap, but I think Apple deserves a premium multiple given how great it is.”

Apple Inc. (NASDAQ:AAPL) manufactures and sells devices such as the iPhone, Mac, iPad, along with its line-up of wearables and accessories. The devices are supported by the company’s app ecosystem, AppleCare, and cloud tools.

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Disclosure: None. This article is originally published at Insider Monkey.