Higher memory costs are testing Apple’s defensive appeal. However, growth in its services business could strengthen the case for buying the dip.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
AAPLartificial intelligencevaluation
Open a keyword to see other news on the same topic.
Related tickers and likely impact
AAPL
• NeutralApple Inc.
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Technology Hardware, Storage & Peripherals |
| Market cap | $5.1T |
| Close on 11/02/2026 | 338.32 |
| Change that session | -1.83% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- Apple (AAPL) Stock Faces Q4 Earnings Margin Squeeze
Apple shares slipped about 1.9% to around US$331.90, even though the company reported record September-quarter revenue of about US$114.5 billion, up roughly 12%, net income of US$30.7 billion and basic EPS of US$2.11, up about 14%. Record Services revenue of US$31.6 billion and double-digit iPhone and Mac growth stood out, while iPad and wearables softened, Services growth guidance slowed, and higher memory costs pressured margins. With a P/E of 36.6x, the article says the valuation already reflects substantial future success. Bearish analysts argue that higher component and compute costs for AI features could weigh on profitability over time.
- What does it mean for the AI trade that Apple is the priciest 'Mag 7' stock?
Panelists debate whether Apple is too expensive at about 36 times forward earnings and what that signals for the durability of the AI trade. One speaker says Apple is getting too expensive, noting that Nvidia trades at 18 times forward earnings while Apple, which is not part of the AI trade, is the priciest Mag 7 stock at about 35 times. The speaker argues the market has been narrowly focused and now penalizes companies that spend heavily on growth, though part of the discount on some companies is valid. Another panelist cites a Goldman Sachs chart showing Apple's free cash flow yield relative to the Nasdaq has tended to trade in line, suggesting it may not be as expensive as many think.
- 3 reasons why the tech stock rout is growing more alarming
Tech stocks are being sold more aggressively, columnist Brian Sozzi writes, even though Apple (AAPL) posted a strong quarter with double-digit iPhone sales growth and Palantir (PLTR) reported a big quarter and outlook; both fell in premarket trading on Tuesday. Analysts remain bullish, yet investors are not buying top tech names despite valuation discounts versus a month ago and historical averages, with Nvidia (NVDA) cited as an example. The S&P 493 has also started slipping as the market recognizes that most companies are tied to the AI boom; if AI-driven productivity gains arrive more slowly than expected, the entire market may need to be re-rated.
- Apple Is Up 24% in 2026: Will AAPL Stock Hit $300 or $400 Next?
Apple shares are up 24% in 2026 and traded at $336.98 in afternoon trading, while Microsoft and Google moved in opposite directions in October. Apple will report Q4 FY2026 results, the first test for new CEO John Ternus, after Q3 revenue of $109.42 billion rose 16.4% year over year. The main near-term concern is rising memory chip costs, which analysts warn could squeeze iPhone margins, while bulls point to Greater China revenue of $18.82 billion in Q3 and Apple Intelligence's planned December launch there. The consensus price target is $332.39, while 24/7 Wall St.'s model puts its base-case one-year estimate at $400.49; analyst ratings are mixed, with 6 Strong Buy, 19 Buy, 13 Hold, 3 Sell and 3 Strong Sell. At a forward P/E of 38x, the market has little room for disappointment in the new CEO's first guidance.
- Apple's Valuation Premium Confronts AI Jitters
Apple's shares have rallied in recent months, lifting its valuation to the highest since 2008 at about 36 times expected earnings over the next 12 months, nearly twice the S&P 500 according to Bloomberg data. Bloomberg Intelligence analyst Anurag Rana says investors are watching whether screen cracks and hinge problems could affect Apple's ability to meet strong demand, and how rising memory costs could squeeze margins. Apple has raised prices on its Pro, Pro Max, Mac and iPad lines, but not yet on the base iPhone, which is expected to launch early next year. Rana notes that AI data center demand for memory chips may reduce Apple's leverage over suppliers, though Apple may counter this by prepaying suppliers or signing long-term agreements. Oracle is raising $20 billion through equity and bonds to fund data center buildout and expects to become cash-flow positive over the next few years.
- Are the good times over for AI stocks?
Yahoo Finance Executive Editor Brian Sozzi reviews last week’s tech sell-off and asks whether the good times for some AI stocks may be over. He notes that AI demand and big tech’s cash balances remain strong, but urges caution about buying on dips ahead of Apple’s earnings this week and Nvidia later this month. Citing Truist’s Keith Lerner, he says tech stocks trade well below their 10-year average P/E ratio as earnings expectations have been cut, while the S&P 500 trades at about 19 times forward earnings. Historically, tech sell-offs have often continued until a clear all-clear signal appears.
Related markets
Latest news
- What Trump losing power over Congress means for Iran, Ukraine and foreign policy
According to CNBC experts, with Democrats taking control of Congress, President Donald Trump could focus more on foreign policy in his final two years in office, while facing closer scrutiny over the wars in Iran and Ukraine. The Associated Press projects Democrats will win a Senate majority and have also taken control of the House, giving them more scope to scrutinize the administration and challenge Trump's foreign-policy agenda. Laurel Rapp of Chatham House said Democrats could use the 'power of the purse' to limit spending on U.S. military and Iran-related costs, but making such restrictions binding over a presidential veto would require enough votes to override it. J.C. Lintzenich of the German Marshall Fund said the president is not a 'lame duck' since he still holds considerable foreign-policy authority, while Congress is expected to provide more oversight, including on Ukraine funding required by law.
- A decision effective from 1/1/2027 will help Dien May Xanh expand its market share
DMX expects Q4 2026 profit to be no lower than Q3, supported by the year-end shopping season, and targets 2026 profit after tax of VND 10,000 billion (+64% YoY), though it could exceed VND 10,500 billion, with 2027 revenue and profit after tax expected to rise 15% and 20%. Vietcap says the planned ban on imports of used electronic devices from 1/1/2027 is likely to benefit DMX, which mainly sells new, genuine products. Management expects ICT and electrical appliances to grow double digits in 2027 and later years, driven by AI-related upgrades, the end of Windows 10 support and replacement of devices bought in 2020–2022. With a market share of about 50% in each category, DMX sees room for further expansion. The House of Future model (AI, Robotics, Smart Home) is expected to launch in Q4 2026 or Q1 2027 at the latest, with no emphasis on revenue or profit targets in the initial phase.
- Deputy Governor Pham Thanh Ha: SBV Strongly Implementing Measures to Reduce Interest Rate Levels
Deputy Governor Pham Thanh Ha said the SBV will actively manage liquidity and supply capital to the market to support lower interest rates, amid high credit demand and global inflation pressure on rates. The SBV has asked credit institutions to cut deposit rates by 0.5-1% per year for new deposits with terms of 6 months or more and to reduce lending rates by 1.5-2% for production, business and priority sectors. Banks have uniformly cut listed rates by 0.5% per year, actual deposit rates fell about 0.4%, and new loan rates fell 0.2-0.5% compared with early October. More than 20 banks have announced preferential credit programs, and the SBV recently launched a 6-month FX-to-VND swap tool.
- FPT 'Reborn'
FPT shares rose to the daily limit of VND 53,900 per share in the 4/11 session, with over 12 million shares traded, lifting market capitalisation by about 6,400 billion VND and regaining the 100,000 billion VND level, after falling to 49,550 VND on 3/11, the lowest in nearly three years. Foreign investors sold a net of about 17,000 billion VND of FPT shares in the first 10 months of 2026 but bought a net of about 183 billion VND in the 4/11 session. On 3/11, FPT put its chip testing and packaging plant in Bac Ninh into trial operation, with a designed maximum capacity of 300 million chips per year, and signed a cooperation MoU with MobiFone on digital infrastructure and platforms. For the first nine months of 2026, revenue reached 40,023 billion VND (+12.4%), pre-tax profit reached 8,770 billion VND (+17%), and revenue from AI and data services rose 55%. VCBS expects FPT's domestic technology revenue to grow 35% in 2026 and 40% in 2027, while the article notes that a sustainable recovery will need more supportive cash flow, especially from foreign investors.
- Democrats win US House to secure control of Congress in midterms
Democrats have won control of both chambers of Congress in the midterms, winning House seats in districts where Trump beat his Democratic opponent by up to 18 percentage points in 2024. They also flipped at least seven Senate seats in Kansas, Iowa, Texas, Ohio, Maine, North Carolina and South Carolina, according to the Associated Press. From January 2027 they will take control of House committees, allowing subpoenas and investigations into the Trump administration and his family's business interests, which could reshape the outlook for crypto legislation and bring greater scrutiny of Trump-linked digital asset businesses. Commentators cited affordability, including high energy costs and renewed rate increases, as the defining issue, while David Gokhshtein blamed Republican candidates for failing to connect with voters. Prediction markets had put the chance of Democrats winning both chambers at roughly 75% before the results were announced.
- Zcash Is Getting a Major Upgrade in November. Could This Be a Catalyst for Further ZEC Price Gains?
The NU7 upgrade, due around Nov. 5, will cut Zcash's target block time from 75 seconds to 25 seconds, making confirmations roughly three times faster, although each exchange sets its own confirmation count. It also sends 60% of each block's fees into a network sustainability reserve, with miners keeping 40%, adds per-block limits on shielded transactions, and shuts down the Sprout privacy pool. The main risk is execution, as activation is on a faster schedule than the usual three months and stable mainnet software only launched on Oct. 22; funds left in Sprout would be lost. The author doesn't expect a big price impact, since upgrades are scheduled in advance and Zcash is already up 134% year to date, though a clean switch would be a positive sign.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.