As market concerns about AI-related investment expenses increase, investors are re-entering Apple to avoid AI concept stocks such as chip makers and cloud computing giants. Apple's stock price fell for a while last month due to the disappointing display of its upcoming AI features, but since it bottomed out on June 25, it has rebounded 15%, increased its market value by nearly 600 billion US dollars, and the stock price has returned to an all-time high. The reversal in Apple's stock price reflects growing market concerns about whether the huge investment in AI can bring returns. Although Apple's AI products have repeatedly disappointed investors, its decision not to participate in the data center “arms race” is now increasingly viewed as an advantage. Mark Bronzo, chief investment strategist at Rye Strategic Partners, said, “The market is playing a game, and Apple is currently benefiting from it because it is not involved in the storm faced by other AI concept stocks. People are worried about how the huge investment in AI by hyperscale cloud service providers will actually be rewarded. At the same time, there are also people who think that semiconductor stocks are overvalued, so investors are returning to stable stocks like Apple that do not have these risks.”
Zhitongcaijing · 2d ago
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As market concerns about AI-related investment expenses increase, investors are re-entering Apple to avoid AI concept stocks such as chip makers and cloud computing giants. Apple's stock price fell for a while last month due to the disappointing display of its upcoming AI features, but since it bottomed out on June 25, it has rebounded 15%, increased its market value by nearly 600 billion US dollars, and the stock price has returned to an all-time high. The reversal in Apple's stock price reflects growing market concerns about whether the huge investment in AI can bring returns. Although Apple's AI products have repeatedly disappointed investors, its decision not to participate in the data center “arms race” is now increasingly viewed as an advantage. Mark Bronzo, chief investment strategist at Rye Strategic Partners, said, “The market is playing a game, and Apple is currently benefiting from it because it is not involved in the storm faced by other AI concept stocks. People are worried about how the huge investment in AI by hyperscale cloud service providers will actually be rewarded. At the same time, there are also people who think that semiconductor stocks are overvalued, so investors are returning to stable stocks like Apple that do not have these risks.”
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