Apple’s Gemini AI Deal And China Risks Weigh On Valuation

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• Apple (NasdaqGS:AAPL) has agreed a partnership with Alphabet to use its Gemini AI model to power an upgraded Siri and other AI features.

• The Gemini powered capabilities are expected to sit at the center of Apple’s next wave of on device and cloud based AI services.

• Separately, a shareholder proposal is urging Apple to publish a report on risks tied to its business exposure to China.

Apple, trading at $258.27, has had a mixed share price record recently, with a 4.7% gain over the past week but a 5.5% decline over the past month and a 4.7% decline year to date. Over longer periods, returns have been 8.9% over 1 year, 81.7% over 3 years and 96.5% over 5 years, which gives investors important context for weighing these developments.

For investors watching NasdaqGS:AAPL, the Gemini partnership and the China risk disclosure push raise questions about how Apple will position AI across its products and how it manages concentration risk in a key market. These issues could shape how you think about Apple’s competitive edge, user trust and long term risk profile as new information becomes available.

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How Apple stacks up against its biggest competitors

• ⚖️ Price vs Analyst Target: At US$258.27, Apple trades about 10% below the US$287.29 analyst target, so price is reasonably close to consensus.

• ❌ Simply Wall St Valuation: Shares are described as trading 15.4% above estimated fair value, which points to an overvalued status.

• ❌ Recent Momentum: The 30 day return of a 5.5% decline shows recent weakness even as AI news and governance questions land.

Check out Simply Wall St’s in depth valuation analysis for Apple.

• 📊 The Gemini partnership could influence how you think about Apple’s AI positioning, especially as it relates to user engagement and ecosystem stickiness.

• 📊 Watch how quickly AI features roll out, any updates to revenue and earnings expectations, and whether the P/E of 33.9 stays above the Tech industry average of 33.2.

• ⚠️ The shareholder push for China risk disclosure highlights concentration risk and how geopolitical or regulatory changes might affect operations and supply chains.

For the full picture including more risks and rewards, check out the complete Apple analysis.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.