Why AAPL is Compelling

TigerOptions
07-02

I’ve been watching $Apple(AAPL)$ closely, I think it’s shaping up as one of the more compelling large‑cap names to consider today.

From my perspective, what makes Apple genuinely enticing right now is the convergence of strategic AI partnerships, renewed technical momentum, and rock‑solid capital allocation.

First, on the innovation front, Apple is taking concrete steps to close its AI gap. Reports that the company is in discussions with OpenAI and Anthropic to supercharge Siri reflect a shift from laggard to contender in generative AI—arguably the most important tech theme of our era. If Apple can meaningfully integrate large‑language models into its device ecosystem, it gains both a functional edge and stickier customer lock‑in, which could translate into higher hardware ASPs and more services revenue over the next few years.

AAPL Weekly Chart

Technically, I find the chart compelling. After slipping nearly 8% in Q2, AAPL has rallied for three straight sessions to hit a six‑week high and reclaiming its 50‑day moving average at about $201. From where I sit, that breakout signals a potential new uptrend; key resistance now lies near $214, with support down around $193 on any pullback.

On the capital‑return side, Apple’s balance sheet still stands out. The company continues to buy back nearly $100 billion of stock annually and maintain its dividend, underpinning EPS growth even if hardware unit sales fluctuate. At roughly 20× forward earnings, the stock isn’t cheap—but given its free‑cash‑flow yield and the optionality of an AI‑powered services boost, I find that multiple reasonable for a blue‑chip with a demonstrated ability to steer through macro headwinds.

My personal plan would be to look for constructive price action above $210 on higher volume—ideally, a close through $214 to confirm the breakout. If that happens, I’d consider initiating a position, aiming for a near‑term target in the $230–$240 zone, where previous highs and Fibonacci extensions converge. Conversely, a dip back to the $200–$203 area (its 50‑day MA) could offer a lower‑risk entry, with a stop just below $193.

In sum, I believe Apple’s pivot toward AI, coupled with its renewed technical strength and shareholder‑friendly cash returns, makes it a standout “core” holding as we head into Q3. If you share my conviction that big‑tech rallies can still be found beyond the usual mega‑caps, Apple deserves a serious look.

@MillionaireTiger @Tiger_comments @Daily_Discussion @CaptainTiger @TigerSG

Disclaimer: This is a general analysis and not financial advice. Always conduct your own research before making any investment decisions.

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Comments

  • AL_Ishan
    07-03
    AL_Ishan
    Okay Apple, welcome to the AI party 😎 If it breaks $214 with volume, I might YOLO a few calls. Risk-on, let’s go! 💥📈
    • TigerOptions
      Sounds good! 🚀 Let’s see if it can clear that $214 level convincingly. Good luck with the calls if you go for it!
  • Venus Reade
    07-03
    Venus Reade
    In 2 years or less, when Meta's AI powered smart glasses and wearables replace the iPhone. Apple fanboys will be looking back to this time with regret. Trust me, Apple's problems have just started.
  • JimmyHua
    07-03
    JimmyHua
    Solid take. Apple’s blend of innovation and strong capital return makes it one of the most dependable names in any portfolio. 📊👍
    • TigerOptions
      Thanks! Agreed—Apple’s balance of innovation and shareholder returns really sets it apart long term.
  • Kristina_
    07-03
    Kristina_
    Totally agree—AI is the next growth engine and Apple finally looks ready to play catch-up. If they get Siri right, this could be huge. 🚀📱
  • Enid Bertha
    07-03
    Enid Bertha
    $212 nice run up today go 🍏 go long long and long

    • TigerOptions
      Let’s see if the momentum keeps pushing it higher.
  • bubblyo
    07-02
    bubblyo
    Your insights on AAPL are thorough
    • TigerOptions
      Glad you found the insights helpful! [Happy]
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