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Tech Stock Roundup: Apple Dips On China Sales; Intel Under Target

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Giuseppe Ciccomascolo
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Key Takeaways
  • Apple stock decreased as Vivo and Huawei overtook it as China’s top smartphone seller in 2024.
  • Intel rose by over 8% in January due to speculation that it could be a takeover target, valued at $85 billion.
  • Rising bond yields and skepticism over the Federal Reserve’s future rate cuts led to a sell-off in popular tech stocks.

Apple stock  dropped last week as the Cupertino-based company was overtaken by Vivo and Huawei in China’s smartphone market in 2024.

Intel shares have risen 8% in January so far amid CEO changes and takeover rumors.

Meanwhile, tech stocks like Nvidia and Palantir fell as rising bond yields  and concerns over interest rates led to a sell-off.

Apple Down As China Sales Disappoint

Apple was dethroned as China’s top smartphone seller in 2024, with local rivals Vivo and Huawei surpassing the iPhone maker after a 17% decline in its annual shipments, according to Canalys data . This marks Apple’s largest annual drop in China since 2016, including a 25% decline in the final quarter.

For the full year, Vivo led with a 17% market share, followed by Huawei at 16%, and Apple at 15%.

The decline highlights growing competition from domestic brands, as factors like the lack of AI capabilities in the latest iPhones affect Apple‘s competitiveness.

Smartphoen sales in China
Apple lost its position as the largest smartphone seller in China. | Credit: Canalys

Huawei, with its return to the premium segment since 2023, saw a 24% rise in shipments in Q4.

To combat the slump, Apple offered price cuts and discounts, while Chinese brands like Xiaomi, Oppo, and Vivo showed stronger growth in the fourth quarter.

After the news, AAPL stock decreased by 4.0%, closing the week down by 2.9%. Since the beginning of the year, Apple stock has been down by 8.8%.

Intel Could Be A Takeover Target

Intel  shareholders are likely eager to put 2024 behind them, but the company is off to a stronger start this year. Shares are up by over 8% in January, outpacing the S&P 500.

While Intel is still down more than 50% over the past 12 months, the recent uptick signals a potential turnaround.

Investors may be reacting to signs of change following CEO Pat Gelsinger’s retirement late last year.

Another development that contributed to the stock last week is Intel’s plan to make its venture fund standalone  while remaining an investor. The move is part of a broader strategy to maximize asset value and increase efficiency.

Intel stock performance
Intel has been among the best performers since the beginning of the year. | Credit: Yahoo! Finance

Additionally, reports  circulated suggesting Intel could be a takeover target, with the company currently valued at around $85 billion. Though these narratives have sparked investor interest, analysts are not yet convinced that Intel is a buy.

Most analysts maintain ‘hold’ ratings , with a few ‘sell’ recommendations, although the average price target suggests a more than 20% upside.

Bond Yields Push Big Tech Stocks Down

Technology stocks fell on Monday and extended the negative trend as investors took profits and sold off speculative names amid rising interest rates.

On Monday only, Nvidia  dropped by 2%, Palantir  fell by 4%, and Rigetti Computing  plunged by 33%. AppLovin , which was the best performing tech stock last year, lost around 1.5%.

The sell-off coincided with a rise in bond yields, with the 10-year Treasury yield hitting its highest level since late 2023. The strong jobs report  raised doubts about further interest rate cuts by the Federal Reserve.

The decline followed a tough week for tech and quantum stocks, with experts noting  that corrections are common after stock peaks, particularly from late November to December.

Micron Technology also slid by 4%, and semiconductor stocks suffered amid new U.S. curbs on AI chip exports.

Quantum computing stocks, including D-Wave and IonQ, plummeted after comments from Meta and Nvidia CEOs suggested useful quantum computers are still years away .

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Giuseppe Ciccomascolo

Giuseppe Ciccomascolo began his career as an investigative journalist in Italy, where he contributed to both local and national newspapers, focusing on various financial sectors. Upon relocating to London, he worked as an analyst for Fitch's CapitalStructure and later as a Senior Reporter for Alliance News. In 2017, Giuseppe transitioned to covering cryptocurrency-related news, producing documentaries and articles on Bitcoin and other emerging digital currencies. He also played a pivotal role in establishing the academy for a cryptocurrency exchange website. Crypto remained his primary area of interest throughout his tenure as a writer for ThirdFloor.
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