Apple's stock climbed nearly 4% on Wednesday after China approved the company's Apple Intelligence service for use in the country, removing a key regulatory hurdle. The gain also pushed the stock to a fresh 52-week high despite weakness across the broader technology sector.

The Nasdaq was down 0.65% in afternoon trading, while the S&P 500 edged up 0.16%. The Technology sector fell 1.96%, making Apple's advance stand out.

China Approval Clears Key AI Hurdle

Apple received regulatory registration for its on-device generative artificial intelligence service, Apple Intelligence, from China's cyberspace regulator, Reuters reported Wednesday.

China requires companies to register large language models and generative AI services before offering them to the public. According to Reuters, Apple Intelligence in China will rely on artificial intelligence models from Baidu Inc. (BIDU) and Alibaba Group Holding Ltd. (BABA).

Alibaba confirmed that its Qwen model will power Apple Intelligence across iPhone, iPad, Mac and Vision Pro devices in China. Baidu also said it is working with Apple on the service.

Reuters said regulators did not announce a launch date. The approval follows Apple's reported 24.4% year-over-year increase in China shipments during the second quarter.

Breakout Defies Weak Tech Sector

Apple's rally also coincided with a technical breakout above its previous 52-week high of $323.45, a move that often attracts momentum investors.

The stock outperformed the broader technology sector by more than five percentage points. While six of the 11 S&P sectors traded lower, Apple continued to attract buyers despite the sector-wide weakness.

From a technical perspective, Apple remains well above its major moving averages. The stock is trading about 8.3% above its 20-day simple moving average and nearly 20% above its 200-day moving average. The 20-day average also remains above the 50-day average, while the longer-term golden cross formed in September 2025 remains intact.

Momentum indicators also remain positive. The moving average convergence divergence (MACD) indicator is above its signal line, suggesting buying momentum continues to strengthen. Technical support is seen near $287.50.

Earnings In Focus

Investors are now looking ahead to Apple's next quarterly results, scheduled for July 30.

Wall Street expects earnings of $1.89 per share on revenue of $108.86 billion, compared with earnings of $1.57 per share on revenue of $94.04 billion a year earlier.

The stock carries a consensus Buy rating. Recent analyst actions include a downgrade to Underweight from KeyBanc with a $250 price forecast, while Citigroup and Evercore ISI reiterated bullish views with $365 price forecasts.

Price Action

AAPL Price Action: Apple shares were up 3.82% at $326.89 at the time of publication on Wednesday. The stock is trading at a new 52-week high, according to market data.