Apple(US:AAPL) Xin Lang Cai Jing·2025-12-09 12:12Core Viewpoint - Apple's previous hesitation in announcing its AI strategy has shifted from a disadvantage to an advantage, positively impacting its stock performance as scrutiny on AI investments increases [1][4]. Group 1: Stock Performance - In the first half of 2025, Apple's stock fell by 18% but later surged by 35%, outperforming major competitors like Meta and Microsoft, while the S&P 500 and Nasdaq 100 indices rose by 10% and 13%, respectively [1][4]. - Apple's current market capitalization stands at $4.1 trillion, making it the second-largest by weight in the S&P 500, surpassing Microsoft and approaching Nvidia [1][4]. Group 2: Investment Strategy - Apple has avoided the AI arms race and the associated massive capital expenditures, positioning itself as a "defensive" stock amid rising AI investment concerns [2][5]. - The expected price-to-earnings ratio for Apple is approximately 33 times, a level seen only a few times in the past 15 years, with the average P/E ratio being below 19 times [2][5]. Group 3: Market Sentiment - Investors view Apple as a safe haven amid concerns about potential AI investment bubbles, with its consumer-facing business model remaining robust [6][7]. - Despite a high valuation, analysts suggest that Apple's long-term outlook remains bullish, although some express concerns about whether the current stock price reflects excessive premiums for its defensive characteristics [5][6].