Apple earnings will test the "AI避险交易" logic, with high valuation and margin pressure as key focus points

Odaily Planet Daily News Apple will release its earnings report after the US stock market closes on Thursday. The market will focus on whether it can continue its strong performance as a beneficiary of the "AI避风港交易 (Anti-capex AI Trade)". So far this year, Apple's stock price has risen by 24%, making it the best performer among the "Magnificent Seven" tech stocks and breaking the $5 trillion market capitalization multiple times.

Analysts believe that investors, concerned about the returns on massive AI capital expenditures, have rotated into Apple, which has relatively lower capital spending. However, Apple's current forward 12-month price-to-earnings ratio has risen to about 35 times, the highest since 2008. Meanwhile, factors such as rising memory chip costs and pressure on profit margins may become key points of focus in this earnings report. (Bloomberg)