NEW YORK, May 10, 2026, 08:05 EDT
Apple stock is starting the week holding close to its recent peaks. Investors are parsing headlines on a potential chip-making agreement with Intel, while a new bull thesis driven by artificial intelligence surfaces on Wall Street. The shares last changed hands at $293.32, just shy of the day’s $294.76 high, putting Apple’s market cap around $4.32 trillion.
Timing could prove critical. U.S. markets are bracing for the April Consumer Price Index on Tuesday, followed by producer prices midweek, then retail sales Thursday. CPI captures what households pay; producer prices focus on inflation pressure earlier in the pipeline. Economists polled by Reuters expect a 0.6% CPI jump, with investors laser-focused on core CPI—excluding food and energy—for signals on where rates might go next.
The broader picture comes as Apple gets a lift from its own numbers. Late last month, the company posted March-quarter revenue up 17% to $111.2 billion, with diluted EPS climbing 22% to $2.01. Apple bumped its dividend to 27 cents a share, too, and signed off on another $100 billion for buybacks.
Apple CEO Tim Cook described the period as the company’s “best March quarter ever,” pointing to what he called “extraordinary demand” for the iPhone 17 series, which pushed iPhone revenue to a new March-quarter peak. CFO Kevan Parekh reported operating cash flow above $28 billion and noted Apple’s active device base climbed to another all-time high. Apple
But there was a hitch. Speaking to Reuters, Cook pointed to supply constraints on advanced processor chips as a drag on iPhone sales, calling demand “off the charts.” Apple flagged rising memory costs as a headwind for the current quarter, though services revenue and China sales came in above forecasts. Reuters
Daniel Ives at Wedbush turned up the heat Friday, bumping his Apple target up to $400 from $350 and dubbing the tech giant a possible “consumer hub of AI.” Ives is eyeing as much as $15 billion a year flowing in from AI-driven services, hinging on Apple’s reach in getting third-party models onto its massive device network. Sherwood News
So far, much of the AI pitch remains more ambition than reality. Investors are looking to Apple’s June developer conference for details—specifically, evidence that AI can actually drive software and services revenue, not just new product features. Wedbush thinks Apple’s next operating-system update could start to push AI services and storage into a more meaningful recurring revenue role.
On the supply side, there’s fresh chatter. Reuters, quoting the Wall Street Journal, said Friday that Intel has a preliminary agreement in place to manufacture certain chips for Apple. No word yet on which products are in play, and neither company offered a comment. If it comes through, the deal would mark a move by Apple to lessen its reliance on TSMC—whose cutting-edge facilities are already stretched by demand from Nvidia and AMD’s AI chips.
Leadership is getting a shakeup as well. In April, Apple announced that Tim Cook is set to step into the role of executive chairman, while John Ternus—currently senior vice president of Hardware Engineering—will take over as CEO on Sept. 1. Ternus’s track record spans iPhone, Mac, iPad, Apple Watch, and AirPods, a résumé that puts a hardware insider at the helm just as Apple pushes harder on its AI strategy.
Google, part of Alphabet, still figures into the mix. In January, Reuters said Apple reached an agreement to tap Google’s Gemini for beefing up Siri — which, so far, hasn’t evolved into the sort of AI “agent” that handles more complicated tasks. Bob O’Donnell, who leads TECHnalysis Research, told Reuters he sees Ternus’ central hurdle as crafting “a better AI story and offering” that’s not as dependent on outside partners. Reuters
There’s a risk here: the week’s focus could shift from Apple to the entire market. If core CPI comes in hot, bets on rate cuts might move even further out, putting real pressure on tech stocks with high valuations. “Very problematic” is how Kristina Hooper, chief market strategist at Man Group, described a much stronger core read to Reuters. Michael Arone at State Street summed it up: earnings are still “the lifeblood of this rally.” Reuters
Apple faces three immediate hurdles: inflation numbers could sway the tech sector’s momentum; Intel’s report might spark a new supply chain narrative; and investors are still betting on Apple’s AI vision, even though the company hasn’t detailed it yet. Expectations have climbed since last month.
