#Apple

Apple and Microsoft shares briefly surpassed the $4 trillion market capitalization on Tuesday. While Apple closed slightly below, Microsoft maintained the threshold, driven by its increased stake in OpenAI. Apple’s surge, a company first, coincides with strong iPhone 17 sales. Investors are optimistic, with Apple shares up 25% and Microsoft up 6% over three months. Both companies are scheduled to release earnings reports this week. Apple has also diversified its supply chain, mitigating trade policy risks.

OpenAI and major hyperscalers like Microsoft, Alphabet, Meta, and Amazon are significantly increasing capital expenditures to build AI infrastructure. This investment race, driven by the demands of generative AI, focuses on supercomputing data centers and Nvidia AI chips. Analysts project substantial capex growth, with total hyperscaler spending potentially reaching $550 billion next year. While these companies aim for AI dominance, they must balance investments with revenue growth and market expectations. Even Apple plans to increase AI spending, signaling a strategic shift.

Apple has begun shipping AI-focused servers manufactured at its Houston, Texas facility, marking a significant step in its $600 billion U.S. investment. These servers, powered by Apple’s silicon, will support Apple Intelligence and Private Cloud Compute services. The move aims to bolster domestic production, create jobs, and enable closer hardware-software integration for accelerated AI innovation. This initiative reflects a strategic shift towards controlling its supply chain and responding to the increasing demands of AI workloads.

Apple’s iPhone 17 series, particularly the “Cosmic Orange” Pro model and the lightweight Air variant, are significantly outselling predecessors, driving stock to new highs. The positive trend contrasts with an Amazon Web Services outage. Investors are eyeing upcoming earnings reports and U.S.-China trade talks. Separately, while some see AI as transformative for emerging markets, others remain skeptical due to existing funding and revenue challenges.

Apple’s iPhone 17 series, including the standard, Pro (“Cosmic Orange” hue), and Air models, has seen strong initial sales, particularly in China, boosting Apple’s stock. Counterpoint Research indicates the series is outpacing its predecessor. Elsewhere, Amazon Web Services experienced an outage, but Amazon’s stock remained positive. The U.S. market closed in the green, with investors monitoring upcoming trade developments and earnings reports. In other news, Trump urged Ukraine to cede territory to Russia after a tense meeting with Zelenskyy.

Apple’s stock surged nearly 4% to a record high, driven by strong early iPhone 17 sales in the US and China, surpassing its predecessor by 14%. Analysts attribute this success to upgraded features, strategic pricing, and advancements in AI integration powered by the A20 chip. Loop Capital upgraded Apple’s stock, raising the price target to $315, citing underestimated long-term growth potential. The successful iPhone Air launch in China further boosts investor confidence. Analysts anticipate strong September quarter results, fueled by iPhone momentum. Despite earlier volatility, Apple’s stock has rebounded strongly, signaling renewed investor confidence.

Apple’s stock reached an all-time high driven by strong iPhone 17 demand, defying earlier concerns about tariff impacts and perceived shortcomings. Counterpoint Research indicates significant outperformance compared to the iPhone 16. Analysts are upgrading AAPL, citing compelling value in the base iPhone 17 model and robust performance from the iPhone Air. Loop Capital set a $315 price target, while Melius Research anticipates a “beat and raise” quarter and highlights the potential of an AI-enhanced Siri. Easing concerns over AI, regulations, and tariffs further boost market sentiment.

Apple is reportedly finalizing a $140 million deal for Formula 1’s U.S. broadcast rights, signaling its aggressive push into live sports. Apple aims to revolutionize sports broadcasting, departing from traditional fragmented models. Eddy Cue emphasizes the need for a modernized, integrated viewing experience, criticizing the current subscription overload. Apple seeks exclusive control over sports leagues, exemplified by the F1 deal and its MLS partnership, aiming to attract younger audiences and reshape content consumption.

Apple’s Eddy Cue outlined the company’s strategy for sports rights, focusing on innovation and differentiated experiences. While interested in acquiring rights, Apple seeks opportunities to deliver something “unique and special,” aiming to disrupt traditional broadcasting models. Cue highlighted issues like blackouts and content fragmentation, referencing Apple TV+’s MLS broadcasting as an example of improvement. Apple is experimenting with broadcasting techniques, seeking a “level of differentiation” by improving video quality and exploring unconventional camera angles. The company views sports rights as a way to reshape how sports are consumed globally.

Apple unveiled updated MacBook Pro, iPad Pro, and Vision Pro models, all powered by the new M5 chip, promising significant performance upgrades. The MacBook Pro starts at $1,599, the iPad Pro at $999, and the Vision Pro, now with a Dual Knit Band, at $3,499. The M5 chip boasts a fourfold increase in compute performance with enhanced AI capabilities. This launch is strategically timed before the holiday season, while analysts are monitoring Apple’s pricing amid geopolitical concerns.