Apple Inc. (Apple (AAPL)) shares jumped more than 2% on Tuesday, riding a wave of investor enthusiasm for large-cap tech stocks. The Nasdaq climbed 1.46%, and the S&P 500 added 0.69%, as the market shifted back into risk-on mode.
The bounce comes after a brutal Thursday, when Apple stock plunged over 6% — its worst single-day drop since April 2025. That selloff was triggered by the company raising prices on its Mac and iPad lineup, which made investors nervous about whether Apple can keep passing along higher costs without scaring off customers, especially with potential iPhone price increases looming.
Now, the focus is shifting to how Apple will manage rising memory costs, the possibility of higher iPhone prices, and its efforts to diversify its supply chain by working with Chinese memory manufacturers.
Apple's Memory Cost Dilemma
According to a CNBC report from Saturday, Apple is once again asking the administration for more flexibility to work with Chinese memory suppliers as it grapples with a severe component cost and supply crunch. This is part of a broader push by U.S. tech companies seeking clearance from the White House, the Commerce Department, and the Pentagon to qualify Chinese vendors without running afoul of U.S. restrictions.
Chinese memory suppliers could help Apple lower costs and gain more bargaining power with existing suppliers. The company might use those chips in devices sold outside the U.S., particularly in China and parts of Asia. But adding a new supplier isn't quick — it could take months of testing, security checks, and factory reviews.
Analysts Weigh In: Price Hikes Were Necessary
Wedbush Securities analyst Dan Ives told CNBC on Friday that Apple had to raise prices to protect margins amid sharply rising memory costs across the tech supply chain. Ives said Apple waited as long as possible and made the move at the right time, as it enters what he expects to be a major three-year hardware cycle. He predicts only limited demand weakness — maybe 1% to 2% churn on some high-end products.
Albion Financial Group CIO Jason Ware also chimed in, telling CNBC on Saturday that investors should continue to own Apple despite the recent price hikes and stock weakness. Ware highlighted Apple's strong long-term setup, supported by upper-single-digit revenue growth, margin expansion, and a large share buyback program. He noted that Apple's affluent customer base remains willing to upgrade, and pricing power should help protect margins without causing major demand weakness. He also pointed to a possible foldable iPhone launch this fall as a catalyst for upgrades.
Overall, analysts maintain a consensus Buy rating with an average price target of $324.16. Recent calls include Evercore ISI reiterating an Outperform rating with a $365 target, KGI Securities downgrading to Hold with a $315 target, and Bank of America Securities maintaining a Buy with a $380 target.
Technical Picture: Constructive but Consolidating
Apple's stock is still trading above its long-term trend indicators. It's about 4.3% above its 100-day simple moving average and 6.8% above its 200-day simple moving average, so the broader uptrend remains intact. However, the shares are 2.5% below the 20-day SMA and 1.3% below the 50-day SMA, suggesting the stock is working through a short-term consolidation phase.
The relative strength index sits at 46.05, indicating neutral momentum — buyers and sellers are roughly balanced, with no clear breakout signal yet. Key resistance is near $302.50, while support sits around $287.50.
Price Action
As of Tuesday's publication, Apple shares were up 2.32% at $288.27, according to market data.
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