Apple (NASDAQ:AAPL) stock is finally in the grip of the AI fever. The iPhone maker traded at 52-week lows of $164 mid-April. In three months, Apple stock surged by 35% and trades at a forward price-to-earnings ratio of 30.3.
I believe that valuations are stretched, considering the company’s revenue and earnings growth trajectory. A correction seems likely in the coming quarters as stocks return to sane valuations after the AI-driven rally. I would, therefore, avoid Apple stock.
At the same time, I remain positive about the long-term business outlook. A deep correction would be a buying opportunity.
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