"The outperformance is a return to form for Apple, whose cash-generating prowess and rock-solid balance sheet have in past bouts of turbulence left it relatively unscathed. The stock has lagged behind the broader market for most of this year as investors chased artificial intelligence riches. We're seeing enthusiasm roll over in the more speculative names, which have become frothy and a victim of their own success. And in a risk-off environment, Apple's cash flow, stability and predictability are all attributes investors are shifting toward,"
"The Nasdaq 100 was on track for its third loss of at least 1% in the past six sessions amid renewed concern that AI profits remained distant while companies ramped up borrowing to fund the massive spending needed to break through. Nvidia fell almost 3% and Palantir lost more than 5%. Advanced Micro Devices Inc. shed nearly 6% after results late Wednesday prompted worries over its profit margins."
Apple notched a modest gain while the Nasdaq 100 Index fell 1.6%, repeating a prior session's divergence. Over the past month Apple rose more than 5% while the tech-heavy index gained less than 0.5%. High-flying AI names such as Nvidia, Palantir and AMD plunged amid renewed concern that AI profits remain distant and companies are borrowing to fund heavy spending. Nvidia fell almost 3%, Palantir lost over 5% and AMD shed nearly 6%. Apple generated about $27.5 billion in net earnings on $102.5 billion revenue last quarter and provided a positive forecast that helped offset weaker China trends. Investors favored Apple's cash flow, stability and predictability.
Read at www.mercurynews.com
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