On November 4, Apple (AAPL) shares hit an all-time high of $354.50, but by Thursday they had corrected about 1.5% amid a 5.52% drop in the Nasdaq index.
On Wednesday, the stock closed at $349.51 — a gain of 5.31%. Investors began actively withdrawing funds from artificial intelligence hardware makers, redirecting capital into Apple, as the company allocates moderate spending to this segment.
Why Apple Became a "Safe Haven"
The sharp rally in the stock was triggered by the Democratic Party's victory in the US midterm elections, which gave them control of both chambers of Congress. Market participants interpreted this outcome as a guarantee of political gridlock. Against this backdrop, the Dow added more than 3%.
At the same time, the market was shedding shares of AI hardware developers due to risks of new restrictions on data center construction. For this reason, Nvidia shares lost about 3%, and Apple's modest AI spending made it a "safe haven" for investors.
The capital inflow may ease pressure on memory component prices, which have become the main factor driving Apple's cost growth this year. Additional supporting factors were cheaper oil and falling US Treasury yields.
As a result, Apple's market capitalization rose to $5.08 trillion. This allowed the corporation to reclaim its status as the world's most valuable company, overtaking Nvidia with its $4.83 trillion.
Dynamics During the Selloff
On Thursday, the US stock market experienced a rapid decline: the Nasdaq Composite fell 5.52%, the S&P 500 dropped 4.36%, and the Dow declined 3.44%. Apple shares fell about 1.5% to $344, while Nvidia lost 9% and Broadcom 10%.
The combined market capitalization of the "Magnificent Seven" IT giants shrank by nearly $900 billion in the last hour of the session. Nvidia accounted for about $374 billion of those losses, while Apple lost almost $59 billion. Over the past year, Apple's stock price is still up about 26%.
Earnings and Technical Picture
The stock's rally offset losses following the release of the fourth-quarter financial report on November 2. Revenue grew 12% year-over-year to $114.5 billion, and earnings per share came in at $2.10 versus the consensus estimate of $1.99. At the same time, Apple forecast gross margin for the December quarter at 45–46%, below the previous 47.9%.
On the daily chart, the stock declined 7.5% from a high of $351.73 recorded on October 23 to $325.33 by November 3 — down to the 0.382 Fibonacci retracement level. This zone acted as support for the second time. Trading volume rose to 89.6 million shares — the highest since late June — and the RSI climbed to 58, indicating bullish sentiment.
If the chart consolidates above $354.50, the stock will move into territory of new all-time highs. The nearest support is $340, with an additional barrier at the 50-day MA around $335. A break below $325 would open the way for sellers to the 0.618 Fibonacci level at $305. The multiple remains a risk factor: Apple trades at nearly 36 times its projected annual income.
Cryptalist Analysis: The rotation of capital from the "overheated" AI segment into defensive stories like Apple reflects growing market tolerance for political uncertainty rather than a fundamental reassessment of tech sector valuations. Apple's return to the top spot by market capitalization is a signal that investors prefer predictable cash flows over aggressive bets on AI infrastructure. Nevertheless, the high multiple and compressing gross margin leave room for correction if the tech sector selloff resumes.