Apple Hits Near-Record High, While Chip Stocks Face Pullback Risk After Massive Rally

2 weeks ago 15

Thomas Richmond

Mon, May 4, 2026 astatine 9:07 AM CDT 4 min read

Quick Read

Apple (AAPL) trades astatine a 34x guardant P/E versus its 10-year mean of 23x, supported by $111.2B successful March 4th gross with double-digit maturation crossed each segments, 49.3% gross margins, and a $100B buyback authorization, portion spending lone $6B annually connected CapEx compared to hyperscalers’ combined $700B. Nvidia (NVDA) fell to $199 from a $213 grounds with a $4.85T marketplace headdress and 26x guardant P/E, posting $68.13B successful fiscal Q4 gross up 73.2% year-over-year and guiding Q1 FY27 astatine astir $78B, but faces emerging contention from Alphabet’s TPUs and Amazon’s Trainium chips.
Both Apple and Nvidia’s stretched valuations hinge connected whether their manufacture dominance is already afloat priced successful oregon if the marketplace needs a prolonged intermission earlier further gains.
The expert who called NVIDIA successful 2010 conscionable named his apical 10 stocks and Apple wasn't 1 of them. Get them present FREE.

The CNBC Halftime Report sheet spent its May 1, 2026, amusement wrestling with 2 large questions that tech investors are asking:

Is Apple's existent valuation sustainable?
Have spot stocks tally excessively far, excessively fast?

Apple: A 34x Forward Multiple Versus a 23x Decade Average

Apple (NASDAQ:AAPL) closed the league wrong 1% of a caller grounds high, trading astatine $280.14 aft a 9.59% April rally. The Halftime panel's statement centered connected a stretched guardant P/E of 34x against a 10-year mean of 23x.

The bull lawsuit rests connected the $111.184 cardinal March quarter, which Tim Cook called "our champion March 4th ever, with gross of $111.2 cardinal and double-digit maturation crossed each geographic segment." Services deed a record, gross margins ran astatine 49.3%, and China gross rebounded 28%. The committee authorized a $100 cardinal buyback, elaborate successful the 8-K filed April 30.

The expert who called NVIDIA successful 2010 conscionable named his apical 10 stocks and Apple wasn't 1 of them. Get them present FREE.

One caller defending the aggregate said, "This isn't conscionable a stock. This is the zeitgeist of the modern consumer." Another argued that "the iPhone income being a small spot light, usually that controls the full narrative. And the information that that took a backseat to everything other is conscionable incredibly exciting."

One of the astir absorbing points astir Apple contiguous is the company's superior efficiency. While hyperscaler peers person poured a combined $700 billion into CapEx, Apple's yearly CapEx sits astatine astir $6 billion, which affords the institution much superior to money its buyback. For those who are bearish connected AI CapEx spending, Apple has been highly conscious with their spend. Some mightiness reason this volition enactment them astatine a competitory disadvantage successful the agelong term, but for now, the company's superior isn't being spent connected projects with questionable returns.

Read Entire Article