$10,000 Invested in Apple Could Be Worth This Much by 2031

Apple (NASDAQ:AAPL) has delivered extraordinary results over the long run. If you had invested $10,000 in the company 30 years ago and held on, you would be a multimillionaire today. However, the tech leader has encountered several headwinds in recent years, including tariffs, antitrust lawsuits, and a CEO change. Does Apple still have what it takes to beat the market? Let's try to determine what $10,000 invested in the company could be worth in five years.

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Apple has attractive growth opportunities

The iPhone remains Apple's most important product by far. In the third quarter of its fiscal year 2026, which ended on June 27, Apple's revenue increased by 16% year over year to $109.4 billion.

iPhone sales came in at $54.2 billion -- almost half of the company's revenue -- up nearly 22% from the year-ago period. Although the iPhone no longer generates the buzz it did 15 years ago, recent quarters have shown that it can still be a meaningful growth driver.

And, in my view, investors should expect it to be just that over the next five years. Here are two reasons why. First, Apple is doubling down on artificial intelligence (AI)-powered features that could meaningfully move the needle on iPhone sales.

Apple's large installed base means it can quickly launch and scale various AI features, gather customer feedback, and make adjustments as needed. Consumers have widely adopted some AI services, and there is likely a market for even better ones.

Apple is arguably in an excellent position to reach millions of customers with its efforts in this market. Second, Apple recently launched the first foldable iPhone, which it dubbed the iPhone Duo. Other smartphone leaders have seen some success with foldable phones.

Apple's first entry into this market may or may not be a hit. It's too early to tell. But even if this version isn't popular, the company will likely make the necessary tweaks to ensure that the next one is. According to some estimates, foldable phones account for just 2% of the overall smartphone market, so there is plenty of room for growth in this category. Apple's recent entry could allow it to tap into this opportunity.

Beyond the iPhone, Apple should experience meaningful growth in other segments, especially its services unit. The company boasts more than 2.5 billion active devices in circulation and offers multiple subscription services across streaming, health, news, and more.

A larger installed base could mean faster services sales growth and stronger margins, since gross margins are much higher within this segment. This could lift Apple's profits over the next few years.

Where the stock could be by 2031

Apple has navigated its recent headwinds fairly well. It has posted strong financial results despite tariffs and has not experienced significant adverse consequences from regulatory headwinds. In my view, it could be much the same through the next few years.

Even with steeper tariffs, Apple could shift its manufacturing footprint to mitigate the impact of higher duties while slightly raising prices to offset higher costs, something it can afford thanks to its strong customer loyalty, granting it significant pricing power.

So, I expect Apple's earnings per share (EPS) to grow at a good clip through the next five years. Assume the company can grow its EPS at an average of 13% per year over this period. Apple's current forward price-to-earnings (P/E) ratio is 35.2, which is much higher than the information technology average of 20.2. But the company is arguably worth it, given its consistent and significant earnings and free cash flow, wide moat through switching costs and intangible assets (its brand name), and attractive long-term prospects.

Suppose the company's forward P/E drops to 32 by 2031; then the stock will generate an annualized return of about 10.87% over the next five years, turning $10,000 into roughly $16,752. That's without dividends reinvested. Those are competitive returns. Of course, if our assumptions are off, so is our prediction. Still, in my view, Apple looks well-positioned to deliver competitive returns over the next five years.

Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple. The Motley Fool has a disclosure policy.