"Ditching Semiconductors for 'Apple (AAPL)'"...Surging as a Refuge in a Plunging Market

▲ Semiconductor stocks, bear market, Apple (AAPL)/AI generated image

Funds that have exited semiconductor stocks, which were shaken by the burden of AI investment, are now flowing into Apple (Apple, AAPL).

According to US economic media Benzinga on July 28 (local time), investors have recently been reducing their exposure to memory and semiconductor-related stocks and buying Apple. Apple's subscription-based revenue has high predictability. Its device usage base across major products and regions has also reached an all-time high.

Apple's cautious AI investment strategy is also attracting market attention. Competitors have committed hundreds of billions of dollars to AI data centers and semiconductor purchases. Apple has chosen to integrate AI features into its existing ecosystem. This strategy, which avoids large capital expenditures, has emerged as a differentiating factor.

Apple has partnered with fintech company Klarna to launch Apple Upgrade. iPhones and Apple Watches can be leased for 12 or 24 months. Macs and iPads offer 24-month or 36-month contract options. Returning an existing device reduces the monthly payment. Apple Card users receive 3% Daily Cash on each installment payment.

Apple will announce its fiscal third-quarter earnings after market close on Thursday. Wall Street expects earnings per share of $1.89 and revenue of $108.58 billion. Revenue in the previous quarter was $111.18 billion, with earnings per share at $2.01. Revenue increased by 17% year-over-year, and earnings per share increased by 22%.

iPhone revenue in the previous quarter was $56.99 billion. Service revenue recorded $30.98 billion. The market will focus on the gross profit margin outlook in this earnings report, as the shortage of memory semiconductors due to AI demand is driving up costs. The growth trend of services and Apple's explanation of its AI strategy will also be key areas of review.

[Article Key Summary]

-Funds exiting semiconductor and memory-related stocks are moving to Apple, which boasts stable cash-generating power.

-Wall Street expects Apple's fiscal third-quarter revenue to be $108.58 billion and earnings per share to be $1.89.

-Gross profit margin due to memory semiconductor supply shortage, service growth, and AI strategy are key points of the earnings announcement.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*