Apple Inc (NASDAQ: AAPL) shares rose Thursday as Bank of America highlighted that U.S. carrier trade-in incentives for the iPhone 18 Pro Max have climbed to $1,200. The richer promotions aim to offset higher device prices and drive a strong upgrade cycle.

Carrier Incentives Surge

Bank of America analyst Wamsi Mohan noted that maximum trade-in credits have increased significantly across recent iPhone generations. The credit for the iPhone 18 Pro Max is now $1,200, compared with $1,100 for the iPhone 17 Pro Max and $1,000 for the iPhone 16 Pro Max.

These promotions largely offset Apple’s higher pricing this year. However, eligibility requirements are strict. Verizon Communications Inc and AT&T Inc generally require customers to trade in an iPhone 14 or newer to qualify for the maximum credit. T-Mobile U.S Inc requires an iPhone 15 Pro or newer.

Mohan reiterated a Buy rating on Apple with a $370 price forecast. The firm bases this target on 37 times its calendar 2027 earnings estimate of $9.98 per share. The analyst cited capital returns, Apple's potential to emerge as a winner in edge AI, and opportunities in new products and markets as key drivers. Risks include a weaker iPhone cycle, slower Services growth, execution challenges around agentic Siri, tariffs, and longer smartphone replacement cycles.

Market Share and Pricing Dynamics

Counterpoint Research data indicates Apple's phone shipments climbed 13% from a year earlier. This growth pushed the company's share of the global smartphone market to an all-time high of 21% for the quarter.

Apple stood alone among major phone makers in holding the line on pricing while competitors raised prices due to rising memory chip costs. Analysts credited the surge largely to strong consumer appetite for the iPhone 17 lineup. Mohan expects a strong iPhone cycle supported by higher average selling prices and adoption of the iPhone Duo. Apple's Siri AI features could also increase consumer interest in upgrading.

Technical Indicators Signal Momentum

From a technical perspective, major trend indicators align in Apple's favor. The stock is trading above its 20-day, 50-day, 100-day and 200-day simple moving averages.

Shares were roughly 4.4% higher than the 20-day benchmark near $321.32 and about 17.3% above the 200-day mark closer to $286.07. The MACD is above its signal line, pointing to improving upside pressure. The histogram is positive, suggesting buyers have maintained control of the recent trend. Additionally, the 20-day SMA remains above the 50-day SMA, which is also above the 200-day average.

Key resistance for Apple sits at the 52-week high of $344.57. Support is around $300.50. A break above that level could lead to price discovery at higher share prices. Apple has gained 40.38% over the past 12 months.

ETF Exposure

Apple is a major holding in several ETFs. The iShares S&P 100 ETF (NYSE: OEF) has a 9.69% weighting, while the Motley Fool 100 Index ETF (NYSE: TMFC) has a 9.74% weighting. The VistaShares Target 15 Berkshire Select Income ETF (NYSE: OMAH) has a 9.97% weighting. As a result, large inflows or outflows from these funds can translate into additional buying or selling of Apple shares.

What the Numbers Show

The combination of rising carrier incentives and stable Apple pricing suggests a strategic shift in how upgrades are financed. While Apple maintained pricing discipline despite input cost inflation that forced rivals to raise prices, carriers absorbed the cost gap through increased trade-in credits. The jump from $1,100 to $1,200 in maximum credits indicates a concerted effort to sustain upgrade momentum for the iPhone 18 series, supporting Bank of America’s view of a multiyear upgrade cycle driven by AI features.

Price Action Update

Apple shares were up 1.00% at $335.72 at the time of publication on Thursday. The stock is approaching its 52-week high of $344.56.

Apple Inc. (NASDAQ: AAPL) is developing an artificial intelligence server that could utilize two or four planned M8 Ultra chips. The company is considering Nvidia Corp’s (NASDAQ: NVDA) NVLink Fusion technology to connect the processors.

The initiative represents a significant expansion of Apple’s in-house silicon strategy beyond consumer devices. The project reportedly began about a year ago with backing from current CEO John Ternus. If launched, it would mark Apple’s first dedicated server hardware since it discontinued Xserve in 2011.

In-House Silicon Push Expands

Apple recently refreshed its Mac lineup with M6, M5 Pro, M5 Max and M5 Ultra chips. The company stated that the 2-nanometer M6 delivers up to four times faster AI performance. This server initiative extends that computational power into data-center systems.

Apple does not expect a launch before 2029. The project could still be canceled or proceed without Nvidia technology. A partnership would potentially integrate Apple’s custom chips with Nvidia’s broader data-center infrastructure.

Broadcom Positioned For Inference Shift

Broadcom Inc. (NASDAQ: AVGO) could emerge as a key beneficiary as AI spending shifts from training models toward running large-scale inference workloads. BakerAvenue Wealth Management chief strategist King Lip said Nvidia has excelled in AI model training. However, for large, repetitive inference workloads, Broadcom is Lip’s “top pick” for the next evolution in custom AI chips.

Lip added that Broadcom does not need Nvidia to lose market share to expand. Both companies can benefit from different parts of growing AI infrastructure demand.

What the Numbers Show

The strategic divergence between Nvidia and Broadcom highlights a structural shift in AI capital expenditure. While Nvidia dominates model training, the move toward inference workloads favors Broadcom’s custom silicon approach. Apple’s entry into server hardware further validates the growing demand for specialized AI processing power beyond general-purpose GPUs.

Market Reaction

Nvidia shares were up 1.89% at $216.17 at the time of publication on Wednesday. Apple shares were up 0.40% at $332.66.