Apple Gains as Investors Shun AI Spending; Foldable iPhone

Apple shares climbed after investors rotated into the company while stocks of firms that have spent heavily on artificial intelligence infrastructure came under pressure. Since bottoming on June 25, Apple added roughly $600 billion in market value and its shares rose about 15% over the recovery period, returning to record highs.

Investors have questioned whether large-scale spending on AI data centers and chips by hyperscalers and semiconductor firms will deliver strong returns. Apple has largely avoided building extensive AI data-center capacity, limiting its direct exposure to the current pressure on AI-focused names. Mark Bronzo, chief investment strategist at Rye Strategic Partners, described the market as a battle and noted that Apple is not in the same storm affecting other AI trades.

On June 25 Apple raised prices for some Macs, iPads and home devices, a move that triggered the company’s biggest single-day share decline since April 2025. iPhone prices have remained unchanged so far, but the company has signalled further increases could be possible. Rising memory chip prices have put pressure on margins across the consumer electronics industry, and Apple is negotiating with two Chinese semiconductor manufacturers to diversify supply sources and reduce procurement costs. Analysts note Apple’s premium customer base provides more flexibility to pass on higher component costs.

Wall Street brokerages have adjusted their outlooks ahead of Apple’s fiscal third-quarter report later this month. JPMorgan analyst Samik Chatterjee raised his price target to $345, citing historical evidence that device price increases have had limited long-term impact on unit volumes. Citi raised its target to $365 and maintained a positive rating, expecting Apple to gain share in smartphones and personal computers and to consider higher iPhone pricing in the September launch cycle, particularly for premium models.

Interest in a long-rumoured foldable iPhone has also supported sentiment. Suppliers have been asked to prepare production of roughly 10 million foldable units this year, up from earlier estimates of 7–8 million. Market participants expect the device to carry premium pricing, which could help offset higher component costs and support revenue. Louis Navellier, chief investment officer at Navellier & Associates, called the foldable iPhone “a huge hit” and added that strong pricing could offset memory cost pressure and support margins.

Apple’s projected cash flow and earnings forecasts are part of the company’s appeal. The firm is expected to generate nearly $140 billion in free cash flow this year, more than 40% above 2025 levels. Analysts forecast revenue growth of nearly 15% for fiscal 2026 and an increase in net income of about 17%.