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Related tickers and likely impact
AAPL
• NeutralApple Inc.
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Technology Hardware, Storage & Peripherals |
| Market cap | $5.0T |
| Close on 10/19/2026 | 342.94 |
| Change that session | -0.15% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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- Is Apple the Ultimate Stock to Buy Right Now?
Apple shares are up about 25% so far in 2026, outpacing the S&P 500's 14% gain, with investors drawn to its limited AI spending. Apple uses Google Gemini for the generative AI in Siri rather than building its own model, and it has spent far less on capital expenditure than Alphabet, while possibly planning AI products sold on a monthly subscription. The author argues the stock is expensive, trading at nearly 40 times trailing earnings, the highest among big tech names, and about 31 times projected 2028 earnings. The author concludes that this valuation already prices in future growth, which points to weaker medium-term returns, and suggests investors consider AI investments with cheaper valuations.
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Apple (AAPL) closed Wednesday at $342.96, up 0.50%, pushing its market value above $5 trillion at a close for the first time, at about $5.01 trillion. NVIDIA (NVDA) fell 3.16% to $221.30 but remains the world's most valuable company at $5.343 trillion, about $338 billion ahead of Apple. If NVIDIA stays at that close, Apple would need a gain of about 6.8% to pass it. The article links a selloff in CoreWeave and Oracle to concerns over AI debt, and notes both Apple and NVIDIA trade at about 45x earnings. The author argues NVIDIA is the more attractive value at current prices, citing its 106% revenue growth versus Apple's 16%.
- Should You Be Worried About Apple Stock?
Apple stock returned 35.1% over the past year versus 17.1% for the S&P 500, but the article says the main pressure now is cost. Management said memory chip prices have risen sharply, calling it a '100-year flood,' and expects higher memory costs in the September quarter. Gross margin still reached 50.1% in fiscal Q3 2026, up from 46.5% a year earlier, though guidance for the September quarter is 47% to 48%, including about one point from tariff refunds. Demand is strong: products brought in $78.7 billion of the $109.4 billion in revenue, and iPhone and Mac sales ran ahead of plan. Apple trades at 38.6 times earnings versus 23.0 for the S&P 500, so the article calls gross margin the key figure to watch in the next report.
- Apple Now Trades at Twice Nvidia’s Forward P/E
Apple closed October 19 at $342.94, just below its 52-week high of $348.15, while NVIDIA closed at $217.09, about 11% under its peak of $243.37. The two companies are worth about $5.00 trillion and $5.24 trillion, but Apple trades at 37 times forward earnings versus 18 times for NVIDIA, roughly 2.1 times the multiple. Apple’s June-quarter revenue rose 16.36% against 105.85% for NVIDIA’s latest quarter, and analysts expect NVIDIA’s EPS to rise from 9.3124 this fiscal year to 15.9146 next year. Apple’s iPhone revenue grew 22% to $54.3 billion, but management guided September-quarter growth of 9% to 11% and gross margin pressure from memory costs. The author argues Apple carries more risk because its 37 multiple has more room to contract if growth slows, while NVIDIA’s discount reflects doubts about cloud spending, custom chips and China.
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Apple's one-year total return is well above the S&P 500's nearly 14%, but Yahoo Finance lists its forward P/E at 35.21, up from 25.71 in June 2025. June-quarter revenue rose 16% to $109.4 billion and diluted EPS climbed 29% to $2.02, driven by iPhone revenue that grew from $44.6 billion to $54.3 billion, while Services reached $30.7 billion versus $27.4 billion a year earlier. Operating cash flow for the first nine months of fiscal 2026 was $117 billion, and Apple repurchased $62.1 billion of shares. However, the third-quarter gross margin of 50.1% included about two percentage points from tariff refunds, which added $0.11 to diluted EPS, so part of the 29% EPS gain does not come from recurring operations.
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Holding Apple shares over the past year would have returned 36.6% including dividends, with the stock now trading at US$343 versus US$247 at the start of the period. The article presents two views: a bullish scenario with a Fair Value of US$300, based on AI-led ecosystem and services growth, and a cautious one with a Fair Value of US$166, assuming 5.5% revenue growth and a 29.0% profit margin. It notes Apple's launch of the US$1,999 iPhone Duo and the AI-focused iPhone 18 Pro, alongside higher product prices as memory costs rose, and higher Q3 2026 revenue, profit and net margin. It also mentions iPhone 18 Pro order cuts, suggesting demand is sensitive to price and product mix. According to the article, the Fair Value in the cautious scenario sits below the current share price.
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