Core Viewpoint - Apple's stock price is under pressure as investors assess the impact of rapidly rising storage chip prices on its profitability, with earnings results expected soon [1] Group 1: Stock Performance - Since reaching a peak on December 2, Apple's stock has declined over 10%, making it the worst performer among the seven major tech stocks and the largest drag on the S&P 500 index during the same period [1] - The stock has experienced eight consecutive weeks of decline, marking the longest streak since 1993 [1] Group 2: Market Concerns - The recent sell-off is partly driven by concerns that soaring storage chip costs will squeeze Apple's profit margins and earnings [1] - This issue has overshadowed positive developments in Apple's AI initiatives and is expected to become more pronounced when supply contracts expire in the second half of 2026 [1] Group 3: Analyst Insights - Analyst Shaan Bhatti, who holds a significant amount of Apple shares, noted that while Apple has faced storage chip price pressures before, the current rate of increase is unprecedented [1] - There is a clear market uncertainty, with fears that more negative news regarding storage chips may emerge [1]

Apple’s stock is taking a hit as investors try to assess how much rapidly rising memory prices are eating into its bottom line. Investors will get a peek when the iPhone maker reports its earnings. https://t.co/mDxZP2WSmD ...

Core Viewpoint - The current interest in artificial intelligence (AI) is characterized as a bubble, with expectations of significant future losses for most investors [2]. Group 1: Historical Context of Technology Bubbles - Numerous technology bubbles have occurred throughout history, with revolutionary innovations often leading to greater speculative bubbles [3]. - Historical examples include the British railway mania, the internet boom, and the SPAC bubble, which share common characteristics that can be applied to the current AI situation [3][4]. Group 2: Characteristics of the Current AI Bubble - The emergence of AI has generated extravagant claims, with proponents suggesting it will solve major global issues and transform economies [9]. - There is a climate of easy money, with low interest rates encouraging speculative investments in AI, similar to past bubbles [11][12]. - Investor optimism is high, with significant disparities between investor sentiment and general public sentiment, driven by economic inequality [19][22]. - A surge in publications and media coverage promoting AI has created a narrative that fuels speculation, reminiscent of past technological manias [25][23]. Group 3: Investment Trends and Valuations - AI startups raised over $200 billion in 2025, with significant capital flowing into private markets rather than public equity [32][33]. - Valuations in the AI sector are extremely high, with companies like OpenAI and Anthropic seeing massive increases in their valuations [41]. - The current market cap to GDP ratio and cyclically-adjusted price-to-earnings (CAPE) ratios indicate that U.S. equities are overpriced, with the CAPE reaching 40 [34][40]. Group 4: Risks and Challenges - The AI technology remains immature, with many experts doubting its ability to achieve artificial general intelligence (AGI) in the near future [42][46]. - There is a significant overcommitment of capital in the AI sector, leading to concerns about future returns and profitability [49][53]. - Unscrupulous behavior and dubious accounting practices are present in the AI ecosystem, reminiscent of past bubbles [54][59]. Group 5: Potential Outcomes - The investment boom in AI may be nearing its end, with signs of financial strain among major players and rising costs impacting profitability [65][66]. - Historical patterns suggest that once the bubble bursts, significant corporate bankruptcies and a shakeout phase will follow, leading to a consolidation in the industry [61][62].

Core Insights - The Norwegian Sovereign Wealth Fund achieved a 15.1% annual return in 2025, driven by strong performances in technology and financial sectors, continuing its reliance on large tech stocks [1] - The fund, managed by the Norwegian Central Bank Investment Management (NBIM), reported a stock investment return of 19.3%, with other asset classes also showing growth [1] - Despite solid overall performance, the fund lagged its benchmark index by 28 basis points [1] Group 1: Performance Highlights - Large tech stocks have consistently dominated the fund's performance in recent quarters, with NBIM holding approximately 1.5% of listed shares in around 7,200 companies globally [2] - The fund's largest holdings include major U.S. tech giants such as Nvidia, Apple, Microsoft, Alphabet, and Amazon [2] - Other asset classes also recorded positive returns, with fixed income investments yielding 5.4% and private real estate investments returning 4.4% [2] - The most notable performance came from private renewable energy infrastructure investments, which achieved a return rate of 18.1% [2] Group 2: Geographical Concentration Concerns - Over half of the fund's assets are concentrated in the U.S., primarily in stocks and bonds, raising concerns among experts due to recent geopolitical tensions [3] - An expert panel appointed by the government has recommended that the fund prepare for increasing geopolitical instability, particularly in light of recent comments from former President Trump regarding Greenland [3] - The expert panel advised against limiting the fund's investment scope, suggesting that NBIM should maintain its global and diversified investment strategy while addressing geopolitical risks [3]

Core Viewpoint - Gao Wei Electronics (01415) experienced a decline of over 5%, currently down 5.27% at HKD 29.5, with a trading volume of HKD 117 million [1] Group 1: Company Performance - Gao Wei Electronics' stock price underperformed compared to the Hang Seng Index in the previous quarter, attributed to market concerns over rising memory prices potentially weakening iPhone demand [1] - The company is expected to see resilient orders this year, with an anticipated 8% year-on-year growth in electronic manufacturing services shipment volume in the first half of the year [1] Group 2: Industry Insights - Analyst Ming-Chi Kuo from Tianfeng International Securities stated that Apple's pricing strategy for the iPhone 18 series aims to avoid price increases, which is beneficial for marketing [1] - Apple is set to announce its fiscal Q1 2026 earnings after the US market closes on January 29 [1] - Current memory pricing for iPhones is negotiated quarterly rather than semi-annually, indicating a potential price increase in the second quarter of 2026, with the expected quarterly increase similar to that of the first quarter [1]

Core Viewpoint - Gao Wei Electronics (01415) experienced a decline of over 5%, currently trading at 29.5 HKD with a transaction volume of 117 million HKD [1] Group 1: Company Performance - Gao Wei Electronics' stock price underperformed compared to the Hang Seng Index in the previous quarter, attributed to market concerns over rising memory prices potentially weakening iPhone demand [1] - The company is expected to see resilient orders this year, with an anticipated year-on-year growth of 8% in electronic manufacturing services shipment volume in the first half of the year [1] Group 2: Industry Insights - Analyst Guo Mingqi from Tianfeng International Securities indicated that Apple's pricing strategy for the iPhone 18 series aims to avoid price increases, which is beneficial for marketing [1] - Current memory pricing for iPhones is negotiated quarterly rather than biannually, suggesting a potential price increase in the second quarter of 2026, with the expected increase in line with the first quarter [1] - Apple is set to announce its fiscal year 2026 Q1 earnings after the US market closes on January 29 [1]

Market Sentiment - The CNN Money Fear and Greed index showed a decline in overall market sentiment, with a current reading of 63.3, down from 65.2, indicating a shift within the "Greed" zone [1][4]. Stock Performance - U.S. stocks settled mixed, with the Nasdaq Composite gaining approximately 0.2% ahead of significant earnings reports, while the S&P 500 fell by 0.01% to 6,978.03 [1][3]. - The Dow Jones closed higher by around 12 points at 49,015.60, while the Nasdaq Composite gained 0.17% to 23,857.45 during the session [3]. Sector Performance - Most sectors on the S&P 500 closed negatively, with real estate, consumer staples, and health care stocks experiencing the largest losses. Conversely, energy and information technology stocks closed higher [3]. Company Highlights - Memory and storage stocks surged after Seagate Technology Inc. exceeded Wall Street expectations and raised its full-year guidance, attributing this to a worsening global supply crunch and high demand driven by AI [2]. - Starbucks Corp. reported better-than-expected first-quarter sales results, contributing positively to market sentiment [2]. Economic Data - The volume of mortgage applications decreased by 8.5% from the previous week during the week ending January 23 [2].

Core Insights - The European chip maker has returned to year-over-year growth driven by increased demand for chips across various sectors including personal electronics, communications, computer peripherals, and industrial machinery [1] Industry Summary - The demand for chips in personal electronics has contributed significantly to the growth of the European chip maker [1] - The communications sector has also shown a strong need for chips, aiding in the company's recovery [1] - Growth in the computer peripherals and industrial machinery markets has further supported the chip maker's positive performance [1]

Core Viewpoint - U.S. stock futures are trading higher, with Microsoft and Apple expected to attract investor attention due to their recent financial performances [1] Group 1: Microsoft Corp. (NASDAQ:MSFT) - Microsoft reported second-quarter revenue of $81.3 billion, representing a 21% year-over-year increase, surpassing the Street consensus estimate of $80.25 billion [1] - The company achieved non-GAAP earnings per share of $4.14, exceeding the Street consensus estimate of $3.86 [1] - Despite the strong financial results, Microsoft shares fell 6.1% to $452.04 in after-hours trading [1] Group 2: Apple Inc. (NASDAQ:AAPL) - Analysts anticipate Apple to report quarterly earnings of $2.67 per share on revenue of $138.42 billion [1] - Apple shares experienced a slight increase of 0.1%, reaching $256.79 in after-hours trading [1]

Group 1 - The core point of the article is that Apple's iPhone 16 is projected to be the best-selling smartphone globally in 2025, with Apple and Samsung continuing to dominate the top ten smartphone sales for the fourth consecutive year [1][3]. - In the top ten global smartphone sales for 2025, Apple occupies 7 positions while Samsung holds 3, collectively contributing to 19% of the total global smartphone sales for the year [3]. - The strong performance of the iPhone series is attributed to robust demand in key markets such as the US, China, and Western Europe, with the iPhone 17 series seeing an 11% increase in sales compared to its predecessor [3]. Group 2 - The iPhone 17 standard model has gained attention for significantly narrowing the configuration gap with the Pro series by offering a high refresh rate screen and increased base storage, making it one of the standout models of the year [3]. - The newly launched iPhone 16e has achieved stable sales in Japan and the US, supporting Apple's efforts to expand its market share due to its accessible price point [3]. - Samsung's Galaxy A16 5G has emerged as the best-selling Android smartphone in 2025, showcasing a balanced hardware and software configuration, while its flagship S series has maintained a position in the global top ten for the second consecutive year [3]. Group 3 - The report predicts that a global shortage of storage chips will lead to price increases for related products, significantly impacting the price-sensitive mid-to-low-end smartphone market, particularly in emerging markets like the Middle East, Africa, and Latin America [4]. - As a result of these market dynamics, flagship models with technological advantages and brand premium capabilities are expected to see an increase in their sales share globally [4].