Apple Stock Up 24% YTD, Valuation Hits 35x P/E Ahead of Earnings

Apple shares rise 24% YTD as 'AI safe haven' trade gains traction. Upcoming earnings test 35x P/E valuation against margin pressures from rising memory chip costs.

Woofun AI reports that Apple will release its quarterly earnings after the US market close on Thursday. The stock has gained 24% year-to-date, outperforming other "Magnificent Seven" peers and repeatedly surpassing the $5 trillion market capitalization threshold.

Analysts indicate investors are favoring Apple due to concerns over returns on massive AI capital expenditures elsewhere, given the company's relatively lower capital spending.

However, the forward price-to-earnings ratio for the next 12 months has reached approximately 35 times, the highest level since 2008. Rising memory chip costs and potential pressure on profit margins are expected to be central topics in the upcoming report.