Apple stock hit a new record Monday on a report that sales of this year’s iPhone models had started strongly.

Shares of the tech giant climbed 3.9%, closing at $262.24 and helping the company surpass Microsoft to become the second largest in the U.S. by market capitalization. Only Nvidia is larger.

The gains came after research firm Counterpoint said late Sunday that the iPhone 17 series outsold the iPhone 16 series by 14% during the first 10 days it was available in China and the U.S., Apple’s two largest markets.

The base model iPhone 17 has been a big winner, especially in China, while the higher-end iPhone 17 Pro Max is seeing the strongest ramp-up in demand in the U.S., the research firm said.

Subsidies from wireless companies seeking to attract higher-value premium subscribers are boosting Pro Max sales in the U.S., the firm said, while the value of the base model iPhone 17 has appealed to other consumers.

Apple last closed at a record in December. It had been weighed down by tariff concerns, which have receded, and worries over the company’s AI offerings.

Apple is on pace for its first record close since December. 

The device maker introduced the new iPhone 17 models as well as a thinner iPhone Air last month. Wall Street has been closely watching the launches to see if they will surpass rollouts of new products in years past.

Investors have been especially eager to see whether consumers who bought new iPhones during the pandemic but have waited to upgrade will finally head back to Apple stores for a new device.

Strength in China is particularly welcome for Apple investors. Sales in the company’s No. 2 market had lagged behind rivals for some time until recently. With a new upgrade cycle taking hold, Apple appears to be taking market share back from local rivals.

The new, super-thin iPhone Air model seems a niche product that isn’t as popular as the base model iPhone 17, which is less expensive and has better features, though the Air is outselling last year’s 「Plus」 model that the Air replaced, the research firm said.