Apple shares rose 16% from their June 25 low and added about $650 billion in market value, Bloomberg reported, reaching a record after a 1.4% gain on Monday. The move came as the Philadelphia Stock Exchange Semiconductor Index fell about 10% over the same period, while the S&P 500 rose roughly 3% and the Nasdaq 100 gained 0.3%. Apple’s advance has made it the strongest performer this year among the Magnificent Seven group of major technology companies, according to Bloomberg.
The rally reflects a market reassessment rather than evidence that Apple has resolved its own AI challenges. Investors had been disappointed by the company’s presentation of forthcoming AI features, but some now view its decision to avoid the data-center spending race as an advantage while questions grow about returns from the large AI outlays of chipmakers and cloud-computing groups. Mark Bronzo, chief investment strategist at Rye Strategic Partners, said investors were turning to Apple as a comparatively steady company amid uncertainty over hyperscalers’ AI spending.
Apple still faces pressure from rising memory-chip prices, which threaten margins. The company raised prices on Macs, iPads and home devices on June 25, although not on iPhones, and indicated that additional increases could follow. Bloomberg also reported that Apple was in talks to buy memory chips from two Chinese semiconductor producers on a Pentagon blacklist in pursuit of lower-cost supply. JPMorgan analyst Samik Chatterjee said Apple’s previous price increases had not prevented volume growth over longer periods, though that assessment is an analyst view rather than a confirmed outcome for the latest increases.
Investors are also looking to a foldable iPhone expected in September as a possible source of upgrades and revenue. Nikkei reported that Apple had asked suppliers to prepare production of about 10 million foldable iPhones this year, up from an earlier forecast of seven million to eight million. Bloomberg said analysts expect Apple’s fiscal 2026 revenue to rise nearly 15% and net income to increase 17%, while free cash flow is projected at a record $140 billion. Those forecasts accompany a demanding valuation: Apple traded at 34 times estimated earnings over the next 12 months, above its 23-times average of the past decade.
The contrast underscores a broader divide in technology markets. TechCrunch, citing an NVCA-PitchBook report, said the scale of expected public-market exits for SpaceX, Anthropic and OpenAI could exceed the value of all U.S. venture-backed exits since 2000. The report attributed AI companies’ elevated valuations in part to the capital-intensive nature of model training and extensive fundraising. Apple’s recent stock performance suggests some investors are favoring established cash generation and relatively restrained capital spending while they wait for clearer evidence of returns from the AI investment boom.
