TLDR
- Apple’s stock outperformed all “Magnificent Seven” peers over the past month while other tech giants declined
- Analysts view Apple as a “safe haven” due to its measured AI spending approach compared to competitors
- Apple could benefit from more AI processing moving to edge devices like iPhones, potentially driving higher selling prices
- The company has pricing flexibility that could help offset potential tariffs
- Key price levels for Apple stock include support at $240-$241 and resistance at $253-$255.75, with major support at $220
Apple has emerged as an unexpected winner among the “Magnificent Seven” tech giants, with its stock outperforming all peers over the past month. While other tech behemoths saw steep declines, Apple shares remained relatively stable, dropping only fractionally during this period.
The company’s measured approach to artificial intelligence spending appears to be winning favor with investors. This comes at a time when AI model costs are rapidly decreasing across the industry.
Melius Research analyst Ben Reitzes highlighted Apple’s strategic position, noting that the company has become a “safe haven” since late January. This period, which Reitzes dubbed “DeepSeek Monday,” saw markets rattled by news of a Chinese startup’s lower-cost AI model.
“It is now evident that costs are going down fast across many AI models, beyond just DeepSeek,” Reitzes explained in a note to clients. Unlike some competitors, Apple never took the major capital expenditure “plunge” into AI infrastructure.
This restraint could prove beneficial for Apple’s services margin, which may “benefit greatly from lower costs of running AI in the cloud,” according to Reitzes. The analyst maintains a “buy” rating on Apple shares.
Another potential advantage for Apple involves the shifting landscape of AI processing. If more AI computations move to edge devices like smartphones, it could drive demand for more powerful iPhones with higher price tags.
Apple recently launched its iPhone 16e at a price point that, while lower than other recent models, still came in higher than Wall Street had expected. The device includes AI features that could attract consumers seeking enhanced capabilities.
Reitzes expressed surprise at “how well Apple is acting in the face of tariff uncertainty and geopolitical tensions.” He noted that Apple has pricing flexibility that could help offset at least some portion of President Trump’s tariffs.
Apple’s stock performance stands in stark contrast to Tesla, which has been the worst performer among the Magnificent Seven. Tesla shares dropped 29% over the past month amid concerns about CEO Elon Musk’s role in the Trump administration and potential European sales pressure.
Price currently mid-range between strong resistance and support zones
For traders and investors tracking Apple stock, several key price levels warrant attention. The stock closed at $241.84 on February 28, 2025, positioning it in a mid-range between strong resistance and support zones.
Short-term support exists between $240 and $241, with resistance at $253-$255.75. These areas represent critical inflection points that could determine the stock’s next major move.
If Apple breaks below the $240 support level, downside targets include the $232-$230 zone, with major support around $220. This $220 area, reinforced by the January 2025 low of $219.38, represents a zone where increased buying interest might emerge.
On the upside, if Apple stock enters a strong uptrend, the $260 level serves as a psychological round number near all-time highs. This represents a potential longer-term resistance target for bullish investors.
Volume profile analysis suggests these levels coincide with high-activity price zones, where liquidity concentration makes price reactions more likely. These areas often attract institutional and algorithmic trading activity.
For risk management, traders are advised to observe price action at these key levels rather than trading blindly. Confirmation through volume, order flow, or candle formations can provide additional confidence in trading decisions.
Market conditions and volume support remain crucial factors when evaluating these levels. Strong volume adds significance to price movements, while weak volume may signal choppy price action ahead.
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