Apple was on pace to close at a record high ahead of its most significant product launch event in nearly a decade, after benefiting from a broader rotation back into technology stocks.

Shares of the iPhone maker rose as much as 0.9% on Monday in premarket trading, above the closing high reached on 3 January 2022. The gain would extend Apple’s year-to-date rally of 39%, a remarkable turnaround for a stock that sank to a 19-month low in the first trading days of the year.

The stock has risen consistently throughout 2023, with investors viewing it as a safe haven in periods of economic risk or uncertainty given the strength of its balance sheet, its capital-return programme, and its durable revenue streams. In addition, its recent results topped expectations, thanks to a rebound in its iPhone and growth in its services business.

“Even with how much it has risen, it still feels like a quality company, with a lot of cash, continued innovation, a fortress balance sheet and a large customer base upgrading their products,” said Devon Drew, CEO of DFD Partners. “It should continue to grow, but it can also weather any storm. That means it works in both risk-on and risk-off environments, and that makes me very excited to own it.”

Apple’s ascent follows Nvidia soaring in 2023 on optimism surrounding artificial intelligence, briefly driving the chip maker above the US$1-trillion market value level. Microsoft, Amazon.com and Alphabet are all trading below record highs.

At the current price, Apple is poised to add $16.5-billion of market cap, putting it even closer to a historic $3-trillion valuation. It is the largest public company by far, and comprises about 7.5% of the weight of the S&P 500 Index. — Ryan Vlastelica, with Farah Elbahrawy, (c) 2023 Bloomberg LP