Apple has been outperforming. But, the good times could soon end, Daiwa says

US investment-grade corporate bond issuance reached $1.88 trillion this year, surpassing the 2020 record, driven by Big Tech firms funding AI projects. Amazon, Alphabet, Meta, Microsoft, and Oracle raised over $370.7 billion combined. Apple recently issued $7.5 billion in bonds. Rising interest rates and AI regulation concerns may impact future debt issuance.

Apple warned that memory chip prices are rising at an unprecedented pace, impacting its December quarter costs. CEO John Ternus noted that memory purchase prices will continue to increase. The company has already raised prices on iPhones, iPads, and MacBooks to offset some of these costs, with margins expected to decrease to between 45% and 46% in the December quarter. Apple's revenue reached a record high of $114.5 billion, up 12%, with the iPhone driving most of the growth.

U.S. added 165,000 jobs in October, exceeding expectations, with unemployment at 4.1%. Sectors like professional services and tech saw gains. Apple is hiring, and strong consumer spending supports its revenue. The Fed may focus on inflation due to labor market resilience.

US investment-grade corporate bond sales hit a record $1.88T in 2023, up 18.7% YoY, driven by Big Tech firms funding AI investments. Amazon, Alphabet, Meta, Microsoft, and Oracle raised over $370.7B combined. Apple recently issued $7.5B in bonds. Rising interest rates and regulation concerns loom, with default insurance costs increasing for major AI spenders.

Apple sold $7.5 billion in bonds on November 5, 2026, its first sale since 2025. The company, which has $136.9 billion in cash, plans to use the funds for buybacks, dividends, and general corporate purposes. The bonds range from $500 million to $2 billion, with maturities between 2028 and 2036, and interest rates from 4.65% to 5.35%. Apple's stock closed at $344.17, down 0.25% after hours.

Apple's market cap reached $5.00 trillion, surpassing Nvidia's $4.39 trillion by $615 billion. Nvidia's shares fell 9.26% due to concerns over AI regulation impacting its data-center business. Apple reported strong iPhone and Services revenue growth and issued $7.5 billion in bonds. Nvidia trades at lower multiples amid policy risks and supply chain concerns.