Apple's China breakthrough on AI provides another tailwind for its stock

Apple’s stock got another boost as the company received approval to use Apple Intelligence in China, pushing shares to a new record high. CNBC reported that Apple will power AI features on devices in China with models from Alibaba, and that it is also working with Baidu, though no formal launch date was announced. The report comes after mixed trading where inflation data cooler than expected supported the market early, while semiconductor and AI-related stocks slid during the session. In parallel, hyperscalers including Amazon, Meta Platforms, Alphabet, and Microsoft rose, and Corning led declines in the portfolio. Apple Intelligence’s rollout could encourage upgrades because older iPhone generations lack the processing power required. China’s overall smartphone market contracted in Q2, but Apple’s share rose to 18.1% from 13.9% a year earlier, according to IDC.