On Tuesday, Apple Inc.'s (AAPL.US) stock rose against the market trend as concerns about weak iPhone demand began to wane. The stock has been on the rise for two consecutive days, with an approximate increase of 3% during this period. According to Dow Jones Market Data, Apple's stock price increased by 1.1% on Tuesday to $233.85, marking the highest closing price since July 16th. During the trading session, the stock touched a historical high of $237.49. The Nasdaq Composite Index fell by 1%, primarily due to ASML Holding N.V. (ASML.US)'s disappointing outlook, which led to a widespread decline in the technology sector.

For Apple investors, this period has been quite complex, especially regarding the outlook for iPhone demand. They have spent several weeks analyzing the ever-changing demand data published by various research institutions and analysts. However, the optimistic sentiment from Wall Street analysts this week seems to have propelled the rise in Apple's stock price.

Apple announced the launch of generative artificial intelligence software, Apple Intelligence, in June. This significant product update excited both consumers and investors. Since then, analysts have been continuously discussing whether the iPhone 16, set to be released in September this year, will trigger a wave of user upgrades as everyone rushes to purchase the phones equipped with new technology.

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However, at the time of the new iPhone's release, Apple also announced that Apple Intelligence would not be launched alongside it. The artificial intelligence software is expected to hit the market sometime this month and will be rolled out in other countries over the next few months. The much-anticipated software's delayed release has led many on Wall Street to doubt that the significant user upgrade cycle may be postponed by at least a year.

Nevertheless, Evercore ISI analyst Amit Daryanani wrote in a research report on Monday, "The phased rollout of AI features will lead to a longer and stronger iPhone upgrade cycle, as the release of new features and new markets will create a powerful word-of-mouth effect." He assigned an "outperform" rating to Apple's stock, with a target price of $250.

JPMorgan Chase & Co. analyst Samik Chatterjee also assigned an "overweight" rating to Apple's stock, with a target price of $265. According to the Apple Product Availability Tracker released by the company, although the delivery times for the high-priced Pro Max models have shortened, the reduction is smaller than in previous iPhone cycles. In a research report on Sunday, he pointed out that this finding confirmed his previous view that the initial weakness in iPhone 16 demand was merely an "anomaly."

In addition, Apple also announced the launch of a new iPad Mini on Tuesday, which is lower in price compared to other iPad models but also features Apple Intelligence capabilities.

So far this year, Apple's stock price has risen by 22%, which is on par with the S&P 500 Index's increase. The company plans to release its fourth-quarter financial report after the market closes on October 31st. Investors and analysts will be closely monitoring the latest developments regarding the demand for the new phones and other Apple devices capable of running artificial intelligence software.