Apple and Meta Rise as AI Stocks Fall
Amid a sell-off in AI-related stocks, Apple (AAPL) and Meta Platforms (META) bucked the trend with Monday gains. Apple surged over 3%, regaining its status as the world's most valuable company. Meta shares rose nearly 2%.
DeepSeek's AI Breakthrough
The catalyst for Apple's rise was the release of DeepSeek's cost-effective AI model. Analysts believe Apple can integrate better AI capabilities into its iPhone products. Meta, which plans to invest heavily in AI this year, also benefited from DeepSeek's breakthrough.
Chipmakers Hit Hard
AI chip manufacturers Nvidia (NVDA) and Broadcom (AVGO) led the decline in chip stocks. DeepSeek's model competes with OpenAI's, raising concerns about overinvestment in AI infrastructure. Nasdaq dropped 3%, dragged down by tech giants like Microsoft (MSFT) and Google (GOOG).
Apple's Earnings Outlook
Despite Monday's surge, Apple shares remain 11% below last month's levels due to weak smartphone and PC sales. The company will report earnings on January 30th. Analysts generally recommend buying the stock, with a price target of $246 within the next 12 months.