Apple shares hit record high as optimism builds over iPhone 8

Apple shares hit an all-time high on Tuesday after research firm IDC released bullish estimates for the widely anticipated new iPhone.

IDC said it expects iPhone shipments to increase 9.1 percent in 2018 after the new iPhone 8, 7S and 7S Plus models are released. This would be the biggest iPhone shipment growth since 2015, IDC said.

Apple’s stock traded about 0.6 percent higher at $162.54 per share. It also hit a record high of $162.85 and helped lift the tech-heavy Nasdaq composite.

The Nasdaq had fallen as much as 0.86 percent earlier in the morning on Tuesday after tensions between the U.S. and North Korea reignited. North Korea fired a missile that flew over Japan early in the morning Tuesday local time.

The tech giant’s stock has easily outperformed the broader stock market, advancing 40 percent this year. The S&P 500, meanwhile, has gained about 9 percent.

But the stock may have more room to run higher, according to Canaccord Genuity analyst T. Michael Walkley. In an Aug. 22 note, Walkley said he expects strong interest by iPhone users to upgrade their phones next year “to drive record earnings.” The widely anticipated new models come as the iPhone marks its 10-year anniversary.

The number of current users exceeds 635 million this year, and they are expected to “drive strong iPhone replacement sales and earnings,” he said. “Our surveys indicate strong consumer interest in and anticipation for new iPhones anticipated to launch in September.”