From Nasdaq: 2025-01-29 07:51:00

The release of DeepSeek’s cost-effective AI model shook the markets, impacting the technology sector and challenging the dominance of the Magnificent Seven stocks. NVIDIA suffered a significant loss in market capitalization, while Apple stood out by avoiding the sell-off and closing in the green, with shares surging over 7% by Tuesday.

Apple rebounded after a period of underperformance, declining nearly 15% from its 52-week high in December 2024. Reports indicated a sharp drop in iPhone shipments, reducing Apple’s market share in China to 15%. The Vision Pro failed to meet sales expectations, adding to concerns over Apple’s innovation abilities.

Apple found support near $220 and outperformed during the market turmoil following DeepSeek’s announcement. Speculation arose that cost-effective AI technology could benefit Apple, enabling more efficient AI applications in its products. This optimism led to a 7% surge in Apple’s stock, outperforming the Roundhill Magnificent Seven ETF.

From a technical perspective, Apple bottomed out near $220 and rebounded towards $240, confirming a trend reversal. However, investors should remain cautious ahead of Apple’s Q1 2025 earnings release on January 30, as the company’s financial performance will heavily influence its stock direction.

Apple’s upcoming Q1 2025 earnings release on January 30 is expected to be a crucial catalyst for the stock. Analysts have shown increasing bullish sentiment, upgrading ratings and price targets. Key focus areas will include iPhone 16 sales, services segment growth, AI initiatives, gross margin trends, forward guidance, and capital allocation strategies.



Read more at Nasdaq:: Apple Swings to Outperformer: Is It a Buy Ahead of Earnings?