Tech Stocks Plummet Amid AI Concerns, Apple Defies Trend
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Should l Buy AAPL?
Source: Fool
- Tech Sector Decline: The Nasdaq-100 index has fallen approximately 3% year-to-date and 4.5% over the past five days, indicating a decline in investor confidence in tech stocks, particularly those related to AI.
- Capital Expenditure Concerns: Despite Alphabet reporting a 30% year-over-year increase in net income for Q4, its stock dropped post-earnings due to plans to spend $175 billion to $185 billion on capex in 2026, raising concerns about future profitability.
- SaaS Companies in Crisis: The iShares Expanded Tech Software ETF has declined about 25% year-to-date, as the market perceives that emerging AI tools could potentially replace traditional SaaS products, posing significant threats to enterprise software business models.
- Apple's Strong Performance: Apple reported a 16% year-over-year increase in quarterly revenue for Q1 2026, with net income reaching $42.1 billion, demonstrating its resilience and unique position in the market, unaffected by the AI hype.
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Analyst Views on AAPL
Wall Street analysts forecast AAPL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AAPL is 299.69 USD with a low forecast of 230.00 USD and a high forecast of 350.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
32 Analyst Rating
19 Buy
11 Hold
2 Sell
Moderate Buy
Current: 275.910
Low
230.00
Averages
299.69
High
350.00
Current: 275.910
Low
230.00
Averages
299.69
High
350.00
About AAPL
Apple Inc. designs, manufactures and markets smartphones, personal computers, tablets, wearables and accessories, and sells a variety of related services. Its product categories include iPhone, Mac, iPad, and Wearables, Home and Accessories. Its software platforms include iOS, iPadOS, macOS, watchOS, visionOS, and tvOS. Its services include advertising, AppleCare, cloud services, digital content and payment services. The Company operates various platforms, including the App Store, that allow customers to discover and download applications and digital content, such as books, music, video, games and podcasts. It also offers digital content through subscription-based services, including Apple Arcade, Apple Fitness+, Apple Music, Apple News+, and Apple TV+. Its products include iPhone 16 Pro, iPhone 16, iPhone 15, iPhone 14, iPhone SE, MacBook Air, MacBook Pro, iMac, Mac mini, Mac Studio, Mac Pro, iPad Pro, iPad Air, AirPods, AirPods Pro, AirPods Max, Apple TV, Apple Vision Pro and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Apple Achieves Record iPhone Sales in China Driven by 'Hermès Orange'
- Record Sales Performance: Apple reported $26 billion in iPhone sales in Q4 2025, marking a 38% year-over-year increase, which underscores strong market demand and brand appeal.
- Color Influence: The newly launched 'cosmic orange' color, which phonetically resembles the Mandarin word for 'success', has led many Chinese consumers to showcase their orange devices on social media, further driving sales growth.
- Consumer Psychology: Many Chinese consumers have taken to the internet to post the phrase 'May all your wishes turn orange', reflecting how cultural factors can influence purchasing decisions and contribute to the iPhone 17's popularity.
- Design Changes Driving Demand: IDC Senior Research Director Nabila Popal noted that the external design changes of the iPhone 17, particularly the introduction of the orange color, significantly increased demand among early upgraders, thereby solidifying Apple's competitive position in the market.
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- iPhones in Space: For the first time, astronauts will carry iPhones provided by Apple, marking a significant milestone as smartphones are utilized in a space mission, although they have been safely used in commercial space flights for about a decade, reflecting NASA's embrace of modern technology.
- Timeline Adjustments: Originally scheduled for early February, the Artemis II launch has been postponed to March, with NASA emphasizing that this operational urgency will facilitate high-value scientific research both in orbit and on the lunar surface.
- Crew-12 Mission Context: The Crew-12 mission is slated for launch on February 11, sending four astronauts to the International Space Station for a six-month mission, further showcasing the effectiveness of NASA's collaboration with SpaceX.
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- Dow Hits All-Time High: The Dow surged more than 1,200 points on Friday, closing at 50,115 with a weekly gain of 2.5%, reflecting a shift of funds from growth to value stocks, which may influence future investment strategies.
- Surge in Capital Expenditures: Alphabet announced that its capital expenditures for 2026 could exceed double the previous year, and despite a 0.5% drop in shares on Thursday, market confidence in its AI investments remains strong, signaling expectations for future growth.
- Software Stocks Crushed: Software stocks faced significant declines due to fears of AI encroaching on traditional SaaS companies, leading to pressure on the entire tech sector, prompting investors to remain vigilant about potential risks and opportunities within the industry.
See More
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- Tech Sector Decline: The Nasdaq-100 index has fallen approximately 3% year-to-date and 4.5% over the past five days, indicating a decline in investor confidence in tech stocks, particularly those related to AI.
- Capital Expenditure Concerns: Despite Alphabet reporting a 30% year-over-year increase in net income for Q4, its stock dropped post-earnings due to plans to spend $175 billion to $185 billion on capex in 2026, raising concerns about future profitability.
- SaaS Companies in Crisis: The iShares Expanded Tech Software ETF has declined about 25% year-to-date, as the market perceives that emerging AI tools could potentially replace traditional SaaS products, posing significant threats to enterprise software business models.
- Apple's Strong Performance: Apple reported a 16% year-over-year increase in quarterly revenue for Q1 2026, with net income reaching $42.1 billion, demonstrating its resilience and unique position in the market, unaffected by the AI hype.
See More
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- Importance of MP Materials: MP Materials operates the only large-scale rare-earth mine in the U.S., valued at $11 billion with an 8.49% stock increase to $61.35; it secured a $400 million investment from the Department of Defense and a $500 million partnership with Apple, ensuring stability in the U.S. rare-earth supply chain.
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- Disappointing Financials: For Q4 2025, PayPal's online branded checkout saw only a 1% year-over-year increase in transaction volume, indicating weak consumer spending during the holiday season, while transactions per active account fell by 5%, highlighting significant challenges in retail.
- Intensifying Competition: PayPal faces fierce competition from tech giants like Apple Pay and Google Pay, which dominate distribution through smartphone integration, exacerbating the pressure on PayPal's market position.
- Investor Confidence Shaken: Although PayPal paid its first-ever quarterly dividend of $0.14 per share totaling $130 million in Q4 2024, management's low guidance for adjusted earnings per share in 2026 failed to boost shareholder confidence, raising questions about capital allocation decisions.
See More
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- Record Sales Performance: Apple reported $26 billion in iPhone sales in Q4 2025, marking a 38% year-over-year increase, which underscores strong market demand and brand appeal.
- Color Influence: The newly launched 'cosmic orange' color, which phonetically resembles the Mandarin word for 'success', has led many Chinese consumers to showcase their orange devices on social media, further driving sales growth.
- Consumer Psychology: Many Chinese consumers have taken to the internet to post the phrase 'May all your wishes turn orange', reflecting how cultural factors can influence purchasing decisions and contribute to the iPhone 17's popularity.
- Design Changes Driving Demand: IDC Senior Research Director Nabila Popal noted that the external design changes of the iPhone 17, particularly the introduction of the orange color, significantly increased demand among early upgraders, thereby solidifying Apple's competitive position in the market.
See More
Apple iPhones to Accompany Artemis II Moon Mission
- Artemis II Mission: NASA is set to launch the Artemis II mission next month, featuring a crew of three Americans and one Canadian who will embark on a 10-day lunar flyby to test hardware and systems for future moon landings.
- iPhones in Space: For the first time, astronauts will carry iPhones provided by Apple, marking a significant milestone as smartphones are utilized in a space mission, although they have been safely used in commercial space flights for about a decade, reflecting NASA's embrace of modern technology.
- Timeline Adjustments: Originally scheduled for early February, the Artemis II launch has been postponed to March, with NASA emphasizing that this operational urgency will facilitate high-value scientific research both in orbit and on the lunar surface.
- Crew-12 Mission Context: The Crew-12 mission is slated for launch on February 11, sending four astronauts to the International Space Station for a six-month mission, further showcasing the effectiveness of NASA's collaboration with SpaceX.
See More
Tech Sector Rebound Fails to Offset Weekly Losses
- Nasdaq Rebound: The Nasdaq gained over 2% on Friday, yet still posted a 1.8% decline for the week, indicating ongoing investor concerns about tech stocks and the need to monitor future market trends.
- Dow Hits All-Time High: The Dow surged more than 1,200 points on Friday, closing at 50,115 with a weekly gain of 2.5%, reflecting a shift of funds from growth to value stocks, which may influence future investment strategies.
- Surge in Capital Expenditures: Alphabet announced that its capital expenditures for 2026 could exceed double the previous year, and despite a 0.5% drop in shares on Thursday, market confidence in its AI investments remains strong, signaling expectations for future growth.
- Software Stocks Crushed: Software stocks faced significant declines due to fears of AI encroaching on traditional SaaS companies, leading to pressure on the entire tech sector, prompting investors to remain vigilant about potential risks and opportunities within the industry.
See More
Tech Stocks Plummet Amid AI Concerns, Apple Defies Trend
- Tech Sector Decline: The Nasdaq-100 index has fallen approximately 3% year-to-date and 4.5% over the past five days, indicating a decline in investor confidence in tech stocks, particularly those related to AI.
- Capital Expenditure Concerns: Despite Alphabet reporting a 30% year-over-year increase in net income for Q4, its stock dropped post-earnings due to plans to spend $175 billion to $185 billion on capex in 2026, raising concerns about future profitability.
- SaaS Companies in Crisis: The iShares Expanded Tech Software ETF has declined about 25% year-to-date, as the market perceives that emerging AI tools could potentially replace traditional SaaS products, posing significant threats to enterprise software business models.
- Apple's Strong Performance: Apple reported a 16% year-over-year increase in quarterly revenue for Q1 2026, with net income reaching $42.1 billion, demonstrating its resilience and unique position in the market, unaffected by the AI hype.
See More
Mining Stocks: Risks and Opportunities for Investors
- TMC Overview: TMC The Metals Company focuses on collecting polymetallic nodules from the Pacific Ocean, currently valued at $2.7 billion with a 13.45% stock increase to $6.41; despite being pre-revenue, its eco-friendly mining approach may attract long-term investors.
- Importance of MP Materials: MP Materials operates the only large-scale rare-earth mine in the U.S., valued at $11 billion with an 8.49% stock increase to $61.35; it secured a $400 million investment from the Department of Defense and a $500 million partnership with Apple, ensuring stability in the U.S. rare-earth supply chain.
- USA Rare Earth Development: USA Rare Earth controls the Round Top deposit in Texas, valued at $3.2 billion with a 6.02% stock increase to $21.84; although still in the construction phase, it has raised $3.1 billion to support the establishment of a domestic rare-earth supply chain.
- Investment Outlook: While TMC, MP, and USA Rare Earth are all pre-revenue and face market volatility risks, their potential in the rare-earth and battery metal sectors makes them attractive for long-term investors.
See More
PayPal CEO Change Amidst Disappointing Earnings
- Executive Change: PayPal's board has decided to fire CEO Alex Chriss and appoint HP's Enrique Lores, effective March 1, reflecting dissatisfaction with current performance and potentially undermining investor confidence.
- Disappointing Financials: For Q4 2025, PayPal's online branded checkout saw only a 1% year-over-year increase in transaction volume, indicating weak consumer spending during the holiday season, while transactions per active account fell by 5%, highlighting significant challenges in retail.
- Intensifying Competition: PayPal faces fierce competition from tech giants like Apple Pay and Google Pay, which dominate distribution through smartphone integration, exacerbating the pressure on PayPal's market position.
- Investor Confidence Shaken: Although PayPal paid its first-ever quarterly dividend of $0.14 per share totaling $130 million in Q4 2024, management's low guidance for adjusted earnings per share in 2026 failed to boost shareholder confidence, raising questions about capital allocation decisions.
See More
