Apple's earnings report will test the logic of the "AI anti-capex trade," with high valuations and margin pressure in focus.

Odaily reports that Apple will release its earnings report after the US stock market closes on Thursday. The market will focus on whether it can sustain its strong performance as a beneficiary of the "Anti-capex AI Trade." Apple's stock has risen 24% so far this year, making it the best performer among the "Magnificent Seven" tech stocks, and it has repeatedly surpassed a $5 trillion market cap.

Analysts believe investors are shifting allocation to Apple, which has relatively lower capital expenditures, due to concerns about the returns on massive AI spending. However, Apple's current forward 12-month P/E ratio has risen to about 35 times, the highest since 2008. Meanwhile, factors such as rising memory chip costs and margin pressure could be key points of focus in this earnings report. (Bloomberg)