Apple Stock Breakout: AAPL Eyes Record Highs As Tech Falls – No Siri Talk From Google
Apple shares continue to grind higher despite a broader tech selloff, prompting investors to weigh the company’s durable fundamentals...
Quick overview
- Apple shares have risen 2.6% to $276.40, outperforming the Nasdaq Composite amid a broader tech selloff.
- A recent policy shift in India allows foreign companies to supply machinery without tax liabilities, enhancing Apple's manufacturing strategy in the region.
- Apple's fiscal first-quarter results showed a 16% revenue increase to $143.8 billion, driven largely by record iPhone sales of $85.3 billion.
- Despite strong fundamentals, investors remain cautious about Apple's valuation in an uncertain market environment.
Live AAPL Chart
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Apple shares continue to grind higher despite a broader tech selloff, prompting investors to weigh the company’s durable fundamentals against a more uncertain and selective market backdrop.
Apple Advances While the Tech Sector Stumbles
Apple has emerged as a relative outperformer during a period of renewed stress across the technology and AI complex. Even as investors reassess valuations and trim exposure to higher-beta names, AAPL stock has continued to edge higher, underscoring its role as a perceived defensive anchor within the sector.
On Wednesday, Apple shares climbed 2.6% to close at $276.40, sharply outperforming a 1.5% decline in the Nasdaq Composite. The gap between Apple and the broader tech index was the widest seen in roughly a year, highlighting a meaningful rotation rather than a broad-based rally. In an environment marked by heightened volatility, some investors appear to be seeking shelter in scale, balance-sheet strength, and proven cash generation.
Still, the resilience has raised a familiar question: how much upside remains after a strong run, and how sustainable is the current momentum as market conditions evolve?
India Policy Shift Strengthens Apple’s Strategic Position
A meaningful catalyst behind the renewed optimism came from India, which continues to grow in importance for Apple both as a consumer market and as a manufacturing base. Over the weekend, the Indian government announced that foreign companies will be allowed to supply machinery to contract manufacturers operating in designated customs-bonded zones without incurring tax liabilities for five years.
The policy, set to remain in force through the 2030–31 tax year, is designed to support export-oriented manufacturing. For Apple, it reinforces India’s role as a strategic counterbalance to concentration risks elsewhere in Asia, particularly as geopolitical and trade tensions remain elevated.
The move also aligns with Apple’s broader push to deepen its manufacturing footprint in the country, supporting both supply-chain resilience and long-term cost efficiency.
Technical Picture Continues to Weaken
Technically, Apple’s chart is looking better now. The stock fell below both its 50-day (yellow) and 100-day (green) simple moving averages, but the $240 level held convincingly, helped by the 200 SMA (red) which acted as support.
AAPL Chart Daily – The 50 SMA Is Broken
THE stock rebounded strongly in Late January and today AAPL soared to $279 at some point clearly breaking above the 50 daily SMA (yellow) so AAPL stock is now looking at December highs above $286.
Expanding Supplier Training Anchors Long-Term Commitment
Beyond tax policy, Apple has been steadily expanding its human-capital investment in India. As part of its global $50 million Supplier Employee Development Fund, the company announced plans to open its first Education Hub in the country.
The hub, located in Bengaluru and operated in collaboration with the Manipal Academy of Higher Education, will begin offering courses in March. Initial programs will focus on digital literacy and Swift coding for beginners, with the aim of building technical capabilities across Apple’s supplier ecosystem.
Apple also plans to broaden training initiatives for supplier employees, starting with Tata Electronics. New curricula will cover robotics, automation technology, smart manufacturing, and advanced digital skills. Later this year, Apple intends to expand its Vocational Education for Persons with Disabilities program in India, which has already benefited more than 18,000 supplier employees globally.
While these initiatives do not materially move near-term earnings, they signal a deeper, longer-term commitment to India as a manufacturing and innovation partner.
Dual-Foundry Speculation Adds a Tentative Tailwind
Adding to the constructive narrative, reports from DigiTimes Asia suggest that Apple and Nvidia are exploring limited partnerships with Intel for select chips targeted around the 2028 timeframe. The discussions reportedly center on dual-foundry sourcing, driven by U.S. manufacturing requirements, diversification goals, and geopolitical considerations.
Under the reported framework, Nvidia would continue to rely on TSMC for core GPU dies while shifting parts of the I/O die and advanced packaging to Intel, leveraging its EMIB chip-to-chip packaging technology. Apple, meanwhile, is said to be evaluating Intel as a potential partner for entry-level M-series chips.
Importantly, these discussions appear exploratory rather than transformational. They do not imply a break from TSMC, but rather a gradual effort to reduce concentration risk and maintain flexibility in an increasingly complex global semiconductor landscape.
Fiscal First Quarter Underscores Operational Strength
Apple’s fiscal first-quarter results reinforced the company’s ability to deliver at scale. Revenue rose 16% year over year to $143.8 billion, comfortably ahead of consensus estimates of $138.4 billion.
Earnings per share came in at $2.84, exceeding forecasts of $2.68, while net income increased 16% to $42.1 billion. The results highlighted Apple’s capacity to convert demand into profitability, even as costs, currency effects, and macro uncertainty persist.
Shares moved modestly higher following the release, pushing the stock back above the $260 level and setting the stage for the subsequent rally.
iPhone Remains the Cornerstone
The iPhone once again led the quarter, delivering record revenue of $85.3 billion. That figure far surpassed expectations of $78.3 billion and marked a sharp increase from $69.1 billion a year earlier.
Year-over-year iPhone revenue growth of 23% reflected both strong product cycles and sustained demand across regions. Apple reported all-time iPhone revenue records in every geographic segment, reinforcing the device’s central role within the ecosystem.
The performance also strengthens Apple’s ability to drive recurring revenue through services, accessories, and upgrades tied to its installed base.
Services Stability and a China Rebound Offer Reassurance
Apple’s Services segment continued to provide steady support, generating $30 billion in revenue, up 14% year over year and in line with expectations. The high-margin, recurring nature of services revenue remains a key stabilizer during periods of hardware cyclicality.
Elsewhere, Mac, iPad, and Wearables delivered solid but less spectacular results. Perhaps most encouraging was the rebound in China, where revenue surged nearly 38% year over year to $25.5 billion. After several challenging quarters, the recovery helps ease concerns about competitive pressures and regulatory headwinds in one of Apple’s most important international markets.
Strength, but Not Complacency
Apple’s recent outperformance reflects confidence in its fundamentals, balance sheet, and global scale. Yet the cautious tone in markets suggests that investors are unlikely to grant an unlimited valuation premium.
For now, Apple stands out as a relative safe haven within tech. Whether the uptrend has further room to run may depend less on Apple’s execution—which remains strong—and more on how the broader market continues to price risk in an evolving AI-driven landscape.
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