How the 'Fast Money' traders view Apple's stock rally

Core Viewpoint - Apple is experiencing a challenging year but has recently shown resilience with a potential for growth, particularly driven by iPhone sales in China and new product innovations like the M5 chip [1][2][4]. Group 1: Financial Performance - iPhone sales in China have increased by 14% year-over-year, surprising analysts and indicating strong demand [2]. - The current valuation of Apple is approximately 33 times next year's earnings, which raises concerns about whether the stock is overvalued [2][15]. - Analysts have set a median price target of $253 for Apple, with a notable portion of analysts rating the stock as a buy [12][13]. Group 2: Product Innovation - The introduction of the M5 chip is expected to enhance Apple's product offerings, providing four times the processing power and positioning the company within the AI space [4][5]. - The iPhone 17 features significant improvements, including enhanced camera capabilities and software, which may drive consumer upgrades [14][15]. Group 3: Market Dynamics - There is a perception that Apple has been underpositioned in the market, especially compared to other tech giants, leading to potential catch-up opportunities [8][9]. - The company is expected to benefit from a hardware upgrade cycle, as many consumers are on their third or fourth year with their devices [10][11]. - The Chinese government's support for iPhone sales through subsidies may further bolster Apple's market position in the region [11]. Group 4: Investor Sentiment - Current market sentiment towards Apple is mixed, with about 60% of analysts rating the stock a buy, which is lower compared to other major tech companies [12][13]. - The options market indicates a potential move of about 3.9% for Apple around its upcoming earnings report, suggesting some investor caution regarding valuation [17].