Apple is a great company – but not much is driving the tech giant toward a $3 trillion valuation, analyst says

• Apple's stock price has surged in 2023, putting the company on the verge of a $3 trillion valuation.
• But investor excitement might not last, according to Cleo Capital's Sarah Kunst.
• "There's not a ton of fundamentals driving this right now," she said Wednesday.

Apple's stock price hit a record-high this week, putting the iPhone maker on the cusp of a $3 trillion valuation - but investor excitement might not last once that milestone is crossed, according to one analyst.

"While Apple is a great company, there's not a ton of fundamentals driving this right now," Cleo Capital managing director Sarah Kunst told CNBC's "Last Call" Wednesday.

"Will people be getting out once they cross that $3 trillion threshold? Before the Vision Pro is introduced? Before they have to grapple with whether anyone actually wants this VR?" she added, referring to the Vision Pro mixed reality headset Apple launched at the start of June. "I don't think we have an answer to that yet."

The tech giant's shares have surged 46% year-to-date, raising its total market capitalization to $2.98 trillion.

Other strategists share Kunst's view on Apple, with Short Hills' CIO Steve Weiss saying earlier this month that the stock mainly appeals to investors as a "safety play" rather than based on its fundamentals.

But some on Wall Street are more bullish on the tech giant, with both Wedbush and Fairlead Strategies recently forecasting its valuation will hit $4 trillion around the end of next year.

Mega-cap Big Tech stocks including Apple have kicked off 2023 with a huge rally, thanks to a combination of the expectation that the Federal Reserve will ease its interest rate hikes and massive hype surrounding ChatGPT and artificial intelligence.

Their gains have helped to lift benchmark indices, with the S&P 500 up 14% and the Nasdaq Composite up 30% year-to-date.