Green, Not Red Apple 🍏

Apple shares climbed 4.3% on Thursday to a share price of $175.04. It is Apple’s best day since May 5, 2023. Apple’s rise came during a strong day for technology stocks, especially those in artificial intelligence, as the Nasdaq Composite rose 1.77%.

⚠️ Trading tips: looking at calls above 175 and puts below 173 on Friday. There could be a dip buy opportunity between 173-175 from profit taking of swing positions. Consumer sentiments data at 10am so beware it may shake it off, I shake it off (hoo-hoo-hoo)… by Taylor Swift.

Overbought territory with some room ahead 😉

Apple is preparing to overhaul its entire Mac line with a new family of in-house processors designed to highlight artificial intelligence. The company, which released its first Macs with M3 chips five months ago, is already nearing production of the next generation — the M4 processor — according to people familiar with the matter.

Apple shares climbed 4.3% Thursday, the biggest single-day gain in 11 months. They had been down 13% this year. The new chip will come in at least three main varieties, and Apple is looking to update every Mac model with it.

The new Macs are underway at a critical time. After peaking in 2022, Mac sales fell 27% in the last fiscal year, which ended in September. In the holiday period, revenue from the computer line was flat. Apple also is playing catch-up in AI, where it’s seen as a laggard to Microsoft, Alphabet’s Google and other tech peers.

Can this save the fruit?

Apple shares are down more than 5% so far this year. On Thursday, JPMorgan analysts wrote that sentiment over Apple shares is improving with hedge fund investors, partially due to its recent stock slide.

Despite some negative trends around iPhone sales in China, and recent reports of canceled projects such as its effort to build a car, JPMorgan analyst Samik Chatterjee said investors may be more comfortable with its current valuation after recent losses and the potential to benefit from AI.

The JPMorgan analysts predicted a strong iPhone sales cycle in 2026 due to forthcoming AI features. Apple CEO Tim Cook recently told investors to expect an AI announcement later this year. That is expected to occur during Apple’s Worldwide Developers Conference event in June.

“Hedge fund investors are increasingly warming up to the opportunity of the AI upgrade cycle, but the uncertainty still pertains to whether the upgrade cycle starts with iPhone 16 in September 2024 or iPhone 17 in September 2025,” Chatterjee wrote.

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