US Stock Futures Climb After Apple Beats Q4 Expectations: Tech Stocks Hold Above Key Level Despite DeepSeek Impact

Apple's quarterly earnings report has given a boost to US stock futures, with tech stocks holding above key levels despite the recent impact of the DeepSeek AI model. The Cupertino-based company reported a 4% increase in overall sales, driven by strong performances in the Mac, iPad, and Services segments. However, iPhone sales in China slipped by over 11%, raising concerns about the company's ability to maintain its dominance in the smartphone market.



Investors have been watching Apple's AI capabilities, particularly its Apple Intelligence feature, with a keen eye. The recent emergence of the DeepSeek AI model has raised questions about the market position of established AI players like Google and Microsoft. Apple's underperformance in the AI space, particularly with its Apple Intelligence feature, has fueled investor concerns about the company's ability to compete in the AI space.

However, Apple's diverse portfolio, which includes the Mac, iPad, and Services segments, has helped the company maintain overall growth despite the iPhone's performance. The Mac and iPad segments both saw a 15% increase in sales, while Services grew by 14%. This diversification has provided some reassurance to investors that Apple's business is not entirely dependent on the iPhone's success.

Apple's plans to roll out its Apple Intelligence feature in additional languages, including Mandarin, this spring could help the company regain some ground in the Chinese market and potentially mitigate the impact of the DeepSeek AI model on its market share. However, investors may be cautious about the company's ability to effectively compete with more efficient AI models like DeepSeek.

In conclusion, Apple's quarterly earnings report has provided a boost to US stock futures, with tech stocks holding above key levels despite the recent impact of the DeepSeek AI model. Apple's diverse portfolio and plans to expand its Apple Intelligence feature could help the company maintain its market position in the face of growing competition from more efficient AI models. However, investors may remain cautious about the company's ability to effectively compete in the AI space until it can demonstrate more concrete progress in its AI capabilities.