Microsoft and Meta are pushing the stock market into even more overbought territory
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jul 31 2025
0mins
Should l Buy AAPL?
Source: MarketWatch
Microsoft Earnings Report: Microsoft reported strong earnings on July 30, leading to an 8.8% stock increase, indicating that the option market has been underestimating its post-earnings moves for a year.
Meta Platforms Earnings Report: Meta also released its earnings after the market closed, with the option market pricing the straddle lower than in previous quarters, suggesting a favorable position for potential buyers.
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Analyst Views on AAPL
Wall Street analysts forecast AAPL stock price to rise
32 Analyst Rating
19 Buy
11 Hold
2 Sell
Moderate Buy
Current: 261.730
Low
230.00
Averages
299.69
High
350.00
Current: 261.730
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.
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- Rapid Growth of Cirrus Logic: Cirrus Logic's stock surged 33% over the past six months, nearly double Apple's gains, with 94% of its revenue derived from Apple, indicating that its reliance on Apple is becoming a catalyst for stock price appreciation.
- Improved Profitability: Cirrus Logic's latest quarterly results exceeded expectations, with revenue up 4.4% year-over-year and earnings per share rising 18% to $2.97, while the company is projected to achieve a 20% increase in earnings to $9.05 per share this fiscal year, surpassing the 16% average growth rate of S&P 500 companies.
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- Cirrus Logic's Strong Performance: Cirrus Logic's stock has surged 33% over the past six months, nearly doubling Apple's stock gains, highlighting its growth potential as a supplier to Apple, particularly in audio and camera controller chips.
- Optimistic Earnings Outlook: Cirrus Logic is poised to achieve a 20% increase in earnings per share to $9.05 this fiscal year, exceeding the 16% average growth expected for S&P 500 companies, indicating its competitive strength and profitability enhancement in the market.
- Attractive Valuation: Cirrus Logic currently trades at a price-to-earnings ratio of 19, lower than the S&P 500's 25 and Apple's 35, showcasing its relative value as an investment option, which may attract more investor interest.
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- Performance of Tech Giants: These companies exhibit a degree of resilience in financial performance, attracting investor attention despite increased market volatility, indicating their relative safety amid uncertainty.
- Investor Confidence: By maintaining continuous innovation and adaptability, these companies not only retain market share but also enhance investor confidence in the tech sector, reflecting their significance during economic turmoil.
- Future Outlook: Despite facing market challenges, the strategic positioning and financial robustness of these tech giants provide them with strong growth potential in future market recoveries, potentially leading the industry resurgence.
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- Infrastructure Investment: With rising demand for AI data centers, significant infrastructure investment deals are anticipated, further solidifying India's position as a global hub for AI technology.
- Talent Attraction: India is regarded as an 'AI talent factory,' with over 60% of Global Capability Centers focusing on AI and data development, and 80% of new centers projected to be AI-led in the next six to eight months, indicating a strong demand for tech talent.
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- Developer Support: While Siri will remain the default wake command, Apple anticipates rolling out developer support in the coming weeks, enabling automatic voice activation with the launch of third-party apps, thereby increasing the relevance of CarPlay in the evolving automotive software landscape.
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- Investor Confidence Shaken: Despite significant advancements by companies like Anthropic and OpenAI in the AI space, market confidence in traditional software companies is waning, resulting in poor stock performance over the past six months and raising concerns about future profitability.
See More
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- Strong Apple Performance: Apple's revenue in Q1 of fiscal 2026 rose by 16% year-over-year to nearly $144 billion, with adjusted earnings per share increasing by 19%, reflecting robust demand for its latest iPhone offerings and suggesting continued outperformance against the broader market.
- Rapid Growth of Cirrus Logic: Cirrus Logic's stock surged 33% over the past six months, nearly double Apple's gains, with 94% of its revenue derived from Apple, indicating that its reliance on Apple is becoming a catalyst for stock price appreciation.
- Improved Profitability: Cirrus Logic's latest quarterly results exceeded expectations, with revenue up 4.4% year-over-year and earnings per share rising 18% to $2.97, while the company is projected to achieve a 20% increase in earnings to $9.05 per share this fiscal year, surpassing the 16% average growth rate of S&P 500 companies.
- Significant Investment Value: Cirrus Logic is currently trading at a price-to-earnings ratio of 19, lower than the S&P 500's 25 and Apple's 35, making it a more attractive investment option given its close relationship with Apple and potential for earnings growth.
See More
Apple's Strong Sales Propel Chipmaker Growth
- Apple Sales Surge: Apple's revenue in Q1 FY2026 rose by 16% year-over-year to nearly $144 billion, with adjusted earnings per share increasing by 19%, reflecting robust market demand and solidifying its leadership in the smartphone sector.
- Cirrus Logic's Strong Performance: Cirrus Logic's stock has surged 33% over the past six months, nearly doubling Apple's stock gains, highlighting its growth potential as a supplier to Apple, particularly in audio and camera controller chips.
- Optimistic Earnings Outlook: Cirrus Logic is poised to achieve a 20% increase in earnings per share to $9.05 this fiscal year, exceeding the 16% average growth expected for S&P 500 companies, indicating its competitive strength and profitability enhancement in the market.
- Attractive Valuation: Cirrus Logic currently trades at a price-to-earnings ratio of 19, lower than the S&P 500's 25 and Apple's 35, showcasing its relative value as an investment option, which may attract more investor interest.
See More
Strategies to Mitigate Market Risks
- Market Risk Management: In the current highly dangerous market environment, tech giants like Apple, Google, Amazon, Meta, and Nvidia are leveraging diversified product lines and innovative technologies to mask underlying market weaknesses, thereby enhancing investor confidence.
- Performance of Tech Giants: These companies exhibit a degree of resilience in financial performance, attracting investor attention despite increased market volatility, indicating their relative safety amid uncertainty.
- Investor Confidence: By maintaining continuous innovation and adaptability, these companies not only retain market share but also enhance investor confidence in the tech sector, reflecting their significance during economic turmoil.
- Future Outlook: Despite facing market challenges, the strategic positioning and financial robustness of these tech giants provide them with strong growth potential in future market recoveries, potentially leading the industry resurgence.
See More
AI Summit in India Attracts Tech Giants
- Market Validation: The AI Impact Summit in India has attracted CEOs from tech giants like Nvidia, OpenAI, and Alphabet, highlighting the global business community's recognition of India's market potential, which is expected to drive future investments and collaborations.
- Infrastructure Investment: With rising demand for AI data centers, significant infrastructure investment deals are anticipated, further solidifying India's position as a global hub for AI technology.
- Talent Attraction: India is regarded as an 'AI talent factory,' with over 60% of Global Capability Centers focusing on AI and data development, and 80% of new centers projected to be AI-led in the next six to eight months, indicating a strong demand for tech talent.
- Executive Position Growth: An increasing number of firms are establishing senior leadership roles, such as 'Chief AI Officer,' in India, reflecting a reliance on local talent and a focus on the AI sector, which enhances competitiveness in the global market.
See More
Apple to Open CarPlay to Third-Party AI Apps, Shifting Strategy
- Portfolio Dynamics: John Overdeck's portfolio positions Apple Inc. (AAPL) as the third-largest holding at 2.79% (approximately $1.39 billion), highlighting its significance among billionaire investors.
- CarPlay Strategic Shift: Apple plans to allow third-party voice-activated AI apps to utilize CarPlay starting February 6, 2026, marking a significant departure from its long-standing Siri-only policy, which is expected to enhance user experience and boost market competitiveness.
- Developer Support: While Siri will remain the default wake command, Apple anticipates rolling out developer support in the coming weeks, enabling automatic voice activation with the launch of third-party apps, thereby increasing the relevance of CarPlay in the evolving automotive software landscape.
- Product Launch Outlook: The upcoming iPhone 17e and iOS 26.4 beta, expected to feature an updated Siri by late February and a potential early March launch for M5 MacBook Pros, indicate Apple's ongoing innovation in the consumer electronics market.
See More
Anthropic Leads AI Revolution, Software Industry Faces Challenges
- AI Disrupts Traditional Software: The rise of Anthropic poses significant challenges to traditional software companies like Workday and Salesforce, particularly in the application of AI technology, threatening their market share and customer loyalty.
- Surge in Capital Expenditures: Tech giants like Amazon and Google have significantly raised their capital expenditure outlooks, with Amazon projecting spending to reach $200 billion, far exceeding the $147 billion consensus, which could impact stock performance and investor confidence.
- Intensified Market Competition: The rapid advancement of AI technology raises questions about the value of enterprise software, leading investors to adopt a pessimistic view on the future of traditional software companies, especially in labor-intensive areas that may face workforce reductions due to AI adoption.
- Investor Confidence Shaken: Despite significant advancements by companies like Anthropic and OpenAI in the AI space, market confidence in traditional software companies is waning, resulting in poor stock performance over the past six months and raising concerns about future profitability.
See More
