US tech stocks recover after selloff spooks investors over AI spending

Impact · against what's priced in

Apple faces immediate pressure as margin compression from memory chip costs undermines its high profitability assumptions. For the AI chipmakers, the recovery from the brief selloff is a return to baseline, as the market continues to refuse the full bull-case revenue projections despite the daily bounce.

AAPL−0.60

Challenges what's priced in

The price assumes

Sustained high profitability, with the price assuming a 23.7% free cash flow margin continues indefinitely.