Apple’s risky gamble to switch to custom ARM processors pays off
June 27, 2022
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Apple’s ($NASDAQ:AAPL) decision to switch from Intel processors to its own custom-designed ARM chips was a risky move, but it has paid off handsomely. The new Macs powered by Apple’s own silicon are much more energy-efficient than their Intel-powered predecessors, and offer performance that is on par with or even better than the competition. This has helped to reinvigorate the Mac product line and boost Apple’s earnings. It remains to be seen how long this performance advantage will last, as Intel is sure to catch up eventually. However, in the meantime, Apple’s decision to gamble on its own custom silicon has paid off in a big way.
The current media sentiment towards APPLE is mostly mixed. On Friday, APPLE stock opened at $139.9 and closed at $141.7, up by 2.5% from the previous closing price of $138.3.
Companies’ fundamentals reflect their long-term potential. The intrinsic value of a company’s stock is a good indicator of its long-term potential. VI Line is a great tool for quickly and easily calculating a company’s intrinsic value. Based on VI Line’s calculation, the intrinsic value of APPLE stock is around $140.1. APPLE stock is currently trading at $141.7, which is slightly overvalued by 1%.
The mixed news surrounding the company’s stock price has not dissuaded investors, and the stock price has actually risen by 2.5% in the wake of the announcement. This suggests that investors are confident in Apple’s ability to make the transition successfully. Looking forward, it is difficult to say what will happen with Apple’s stock price. However, if the company can continue to execute its plans smoothly, there is a good chance that the stock will continue to rise.
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