CBN News 2026-11-05 11:03:58 Listen to the news

Author: Zheng Xutong Editor-in-Chief: Liu Jia

On November 4th local time, Apple ( AAPL.O ) soared by 5.31%, with its market value increasing by 25.59 million US dollars (approximately 1.7 trillion yuan), closing at a market value of 5.08 trillion US dollars, regaining its position as the world's largest company by market value. Meanwhile, NVIDIA ( NVDA.O ) fell by 3.17%, closing at a market value of 4.82 trillion US dollars, and was surpassed by Apple.

The fact that one company's stock price rises while another falls is not coincidental. In addition to Apple, many large-scale technology companies listed in the U.S. stock market also saw increases in their stock prices on November 4th. Google's parent company, Alphabet ( GOOGL.O ), rose by 3.18%, Microsoft ( MSFT.O ) rose by 6.68%, Amazon ( AMZN.O ) rose by 6.12%, and Meta ( META.O ) rose by 1.44%. However, several stocks that, like NVIDIA, are providers of data centers or computing power saw declines. Memory chip manufacturers Micron Technology ( MU.O ) and SanDisk ( SNDK.O ) fell by 7% and 7.91%, respectively. AI , a cloud computing company, fell by 9.9%, and AI , an infrastructure provider ( Marvell ), fell by 7.08%.

Korean stock storage giants Samsung Electronics (005930. KS) and SK Hynix (000660. KS) were also dragged down, falling by more than 5% and more than 7% respectively during trading on November 5th.

On the surface, the Democratic Party in the United States made significant progress in the mid-term elections. The Democrats pledged to take tough measures regarding data center construction in some states, which has raised concerns in the market about curbing data center development. Mark Mallick, the Chief Investment Officer of the American financial services company Siebert Financial, stated that factors such as higher infrastructure construction costs and reduced tax incentives could put pressure on returns, while investors place a high emphasis on profit margins.

At the same time, the increasing costs of data center construction in the United States have instead strengthened investors' confidence in large technology companies that are promoting the use of AI. Previously, there were doubts about the actual returns on large investments made by the market in AI data centers by ultra-large technology companies. Facing the new market situation, Art Hogan, the chief market strategist at B.Riley wealth, a wealth management company, analyzed that ultra-large technology companies already possess data centers, and these assets have become more valuable. Moreover, if the overall pace of data center construction slows down, their capital expenditures will also slow down.

Regarding Apple, Evercore ISI analyst Amit Daryanani (Emmet Dyanani) stated that the company's profit drivers are its iPhone portfolio and related services, rather than data center construction. When investors begin to take defensive measures, Apple becomes the preferred choice.

While its data center construction has come under severe market scrutiny, Apple's current efforts to popularize the personal intelligent system Apple Intelligence have also become a window through which to observe new business models.

On November 4th, the latest version developed by iOS under the brand Apple Intelligence was opened for domestic testing. It can be used for basic Q&A, image and text analysis, and content generation on iPhone. In China, Apple Intelligence has integrated with Alibaba's Qianwen service. During the financial report conference call on November 2nd local time, regarding the usage costs of AI, Apple's management stated that there are some inference costs associated with the token (tokens) on the server side, but no costs on the devices themselves. As for potential revenue, Apple mentioned that they have seen several ways in which AI could contribute to revenue growth; for example, collaborating with third-party manufacturers is seen as an opportunity.

While advancing the application of AI, another piece of news about Apple saving AI costs has caught the market's attention. According to the reports, Apple is cutting the AI budget for its employees, reducing the daily AI expenditure limit for some engineers from $300 to $200 as one of the measures to control costs.

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