‘It’s a lot more of headline risks than anything else’: Analyst maintains bullish outlook on Apple
An Apple store on Nanjing Road Pedestrian Street in Shanghai, China, on December 16, 2022.
CFOTO | Future Publishing | Getty Images
One analyst maintains a bullish outlook on Apple despite shares of the tech giant falling to their lowest since June 2021 amid continued iPhone supply concerns.
“Apple is the biggest U.S. name out there, and we think it is a lot more headline risks than anything else,” Angelo Zino, senior industry analyst at CFRA Research, told CNBC’s “Squawk Box Asia” on Wednesday.
related investing news
A headline risk is the risk that a company’s share price will decline from negative news coverage.
Apple shares fell to their lowest level since June 2021 as iPhone production is under threat from a widespread Covid outbreak in China after the country exited its zero-Covid policy.
Loading chart…
The outbreak could potentially cause worker shortages at component plants or assembly factories across the country.
For the last two months, Apple has already been grappling with production shortages. In November, iPhone 14 production was hit by Covid-19 restrictions and labor protests at its primary iPhone 14 Pro and iPhone 14 Pro Max assembly plant in Zhengzhou, China.
Last week, a JPMorgan Chase analyst said that the supply shortfall should continue through the end of the year and weigh on the typical seasonal upshot in volumes. Apple had warned on Nov. 6 of a “significant disruption” ahead of the holiday season.
“While the rapid extension of lead times for the iPhone 14 Pro/Pro Max has slowed down and in fact began to moderate in recent weeks, it still remains elevated relative to the lead times seen prior to the COVID outbreak in Zhengzhou,” said Samik Chatterjee, in a note to investors.
“Ultimately, Apple is going to do everything they possibly can to defend their business as long as they can across different geographical regions,” said Zino.
He further added that the actual impact to the top line is going to be less than 1% in the U.S. and Europe.
Despite shortages, many analysts predicted that Apple customers will continue to be loyal to the brand’s products.
“We think a lot of the consumers out there are creatures of habit and won’t necessarily steer away from what they have done historically on Apple’s ecosystem,” said Zino.
In the interview, he also mentioned that Apple and Microsoft have held up despite headwinds in the tech sector.
“When you look at the names that have held up the best, two of them are Apple and Microsoft and that makes a lot of sense,” said Zino.
“Because from a multiple perspective, they are a lot more affordable than some of the other names out there and have the best free cash flow predictability.”
Mike Intrator, co-founder and CEO of CoreWeave, speaks at the Nasdaq headquarters in New York on March 28, 2025.
Michael M. Santiago | Getty Images News | Getty Images
CoreWeave shares fell about 6% in extended trading on Tuesday even as the provider of artificial intelligence infrastructure beat estimates for second-quarter revenue
Here’s how the company did in comparison with LSEG consensus:
- Earnings per share: Loss of 21 cents
- Revenue: $1.21 billion vs. $1.08 billion expected
Revenue more than tripled from $395.4 million a year earlier, CoreWeave said in a statement. The company registered a $290.5 million net loss, compared with a $323 million loss in second quarter of 2024. CoreWeave’s earnings per share figure wasn’t immediately comparable with estimates from LSEG.
CoreWeave’s operating margin shrank to 2% from 20% a year ago due primarily to $145 million in stock-based compensation costs. This is CoreWeave’s second quarter of full financial results as a public company following its IPO in March.
CoreWeave pointed to an expansion in business with OpenAI, a major client and investor. Also during the quarter, CoreWeave acquired Weights and Biases, a startup with software for monitoring AI models, for $1.4 billion.
In May, management touted 420% revenue growth, alongside widening losses and nearly $9 billion in debt. The stock still doubled anyway over the course of the next month.
CoreWeave shares became available on Nasdaq at the end of the first quarter, after the company sold 37.5 shares at $40 each, yielding $1.5 billion in proceeds. As of Tuesday’s close, the stock was trading at $148.75 for a market cap of over $72 billion.
A CoreWeave data center project with up to 250 megawatts of capacity is set to be delivered in 2026, the company said in the statement.
Executives will discuss the results and issue guidance on a conference call starting at 5 p.m. ET.
This is breaking news. Please check back for updates.
WATCH: Citi’s Tyler Radke’s bullish call on CoreWeave, upgraded to buy
U.S. President Donald Trump (L) invites Nvidia CEO Jensen Huang to speak in the Cross Hall of the White House during an event on “Investing in America” on April 30, 2025 in Washington, DC.
Andrew Harnik | Getty Images
The Trump administration is still working out the details of its 15% export tax on Nvidia and AMD and could bring deals of this kind to more companies, the White House’s Karoline Leavitt said Tuesday.
“Right now it stands with these two companies. Perhaps it could expand in the future to other companies,” said Leavitt, the White House’s spokesperson.
“The legality of it, the mechanics of it, is still being ironed out by the Department of Commerce, and I would defer you to them for any further details on how it will actually be implemented,” she continued.
President Donald Trump confirmed on Monday that he had negotiated a deal with Nvidia in which the U.S. government approves export licenses for the China-specific H20 AI chip in exchange for a 15% cut of revenue. Advanced Micro Devices also got licenses approved in exchange for a proportion of its China sales, the White House confirmed.
“I said, ‘If I’m going to do that, I want you to pay us as a country something, because I’m giving you a release,'” Trump said Monday.
“We follow rules the U.S. government sets for our participation in worldwide markets,” Nvidia said in a statement this week.
Trump said the export licenses for AMD and Nvidia were a done deal. But lawyers and experts who follow trade have warned that Trump’s deal may be complicated because of existing laws that regulate how the government can charge fees for export licenses.
The Commerce Department didn’t immediately return a request for comment.
The H20 is Nvidia’s Chinese-specific chip that is slowed down on purpose to comply with U.S. export relations. It’s related to the H100 and H200 chips that are used in the U.S., and was introduced after the Biden administration implemented export controls on artificial intelligence chips in 2023.
Earlier this year, Nvidia said that it was on track to sell more than $8 billion worth of H20 chips in a single quarter before the Trump administration in April said that it would require a license to export the chip.
Trump signaled in July that he was likely to approve export licenses for the chip after Nvidia CEO Jensen Huang visited the White House.
The U.S. regulates AI chips like those made by Nvidia for national security reasons, saying that they could be used by the Chinese government to leapfrog U.S. capabilities in AI, or they could be used by the Chinese military or linked groups.
The Chinese government has been encouraging local companies in recent weeks to avoid using Nvidia’s H20 chips for any government or national security-related work, Bloomberg reported on Tuesday.
WATCH: Access to Nvidia’s H20 won’t hand China an AI advantage: Analyst
-
Sports3 years ago‘Storybook stuff’: Inside the night Bryce Harper sent the Phillies to the World Series
-
Sports1 year agoStory injured on diving stop, exits Red Sox game
-
Sports2 years agoGame 1 of WS least-watched in recorded history
-
Sports2 years agoMLB Rank 2023: Ranking baseball’s top 100 players
-
Sports4 years ago
Team Europe easily wins 4th straight Laver Cup
-
Sports2 years agoButton battles heat exhaustion in NASCAR debut
-
Environment2 years agoJapan and South Korea have a lot at stake in a free and open South China Sea
-
Environment2 years agoGame-changing Lectric XPedition launched as affordable electric cargo bike