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Apple Soars as Google's Antitrust Woes Lift $20B iPhone Deal
5 Sep
Summary
- Apple's stock jumps 3.3% after court ruling allows Google's $20B deal
- Cramer cautions it's "too early" to buy, but sees Apple weathering challenges
- Apple stands out as the only major tech firm not heavily investing in NVIDIA's AI
In the tech sector's recent downturn, one company has managed to buck the trend: Apple Inc. (NASDAQ:AAPL). The tech giant's shares jumped 3.3% on Wednesday, thanks to a major development that removed a key headwind.
The catalyst was a court ruling that allowed Google, the search engine giant, to continue its lucrative deal to push its services on Apple's iPhones. This deal, reportedly worth $20 billion, has been a significant revenue stream for Apple. With the legal hurdle cleared, investors breathed a sigh of relief, sending Apple's stock higher.
However, not everyone is convinced it's time to buy. Prominent investor Jim Cramer cautioned that it's "too early" to invest, as China remains a "wildcard" in the ongoing trade negotiations. Cramer believes Apple, along with other tech heavyweights like NVIDIA, will ultimately find a way to navigate the challenges and make money.
One area where Apple stands out is its approach to artificial intelligence (AI). Unlike many of its peers, Apple has not been writing "huge checks" to NVIDIA, the leading provider of AI-focused graphics processing units (GPUs). Cramer sees this as a potential advantage, suggesting Apple may have the "last laugh" while others "fall flat on their faces."
As the tech sector continues to navigate uncertain waters, Apple's resilience and unique positioning could prove to be a valuable asset for investors looking to weather the storm.
