Apple Stock Climbs For Second Day As Analyst Sees Resilience Against DeepSeek Storm: Retail Awaits Earnings Cautiously

TD Cowen expects the market focus on DeepSeek and efficient models to accelerate AI app innovation and mobile upgrades.

Apple, Inc. (AAPL) stock advanced strongly for a second straight day, and an analyst said he expects DeepSeek’s rise to prominence would benefit the tech giant

Apple stock climbed 3.18% on Monday, but its tech peers were routed amid fears that China-based DeepSeek’s R1 large-language model would hurt their prospects.

Apple was late to the artificial intelligence (AI) party. Its AI feature, Apple Intelligence, began rolling out in the U.S. only in December and is widely expected to launch in other regions in the first half of the year.

TD Cowen analysts explored why Apple remains resilient despite market turbulence. According to a note cited by The Fly, analysts believe that advancements in efficient AI models, such as DeepSeek, could drive device upgrade cycles, positioning Apple as a key beneficiary.

The brokerage expects the market focus on DeepSeek and efficient models to accelerate AI app innovation and mobile upgrades.

While the analysts warned about the macroeconomic headwinds in the first half of 2025, they said a richer selling price and stable margins will likely be positive offsets.

Apple’s shares have remained under pressure since hitting an all-time high in late December, as sell-side commentary regarding the weak uptake of iPhones has weighed on the company. 

The stock’s relative outperformance has helped Apple wrest back its market capitalization leadership it recently ceded to Nvidia Corp. (NVDA).

Cupertino will report its fiscal year 2025 first-quarter results after the market closes on Thursday. Analysts, on average, expect the company to report earnings per share (EPS) of $2.35, up from $2.18 a year ago, and revenue of $124.25 billion versus last year’s $119.58 billion.

On Stocktwits, sentiment toward Apple stock stayed 'extremely bullish' (84/100), with etail chatter at ‘high’ levels.

A stock watcher said Apple isn’t a “one-trick pony” like Nvidia, potentially justifying Apple’s gains on Monday. 

On the other hand, another said the $7+ move on Monday was without any meaningful catalyst and that the earnings report may not be great.

The stock climbed 4.13% to $239.36 in early afternoon trading.

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