Apple Inc (NASDAQ: AAPL) may have been a laggard in artificial intelligence (AI) roll outs, but its Q1 earnings confirm it continues to lead in consumer technology and loyalty.

On Thursday, the multinational posted a record $143.76 billion in revenue on $2.84 per share of earnings – both handily beating Street estimates.

The quarterly strength was driven largely by a massive surge in smartphone revenue, which jumped 23% year-over-year as the iPhone 17 cycle kicked into high gear.

Investors cheered the release, sending Apple stock up some 5% in after-hours as the results silenced critics who doubted the titan’s near-term growth potential during its transition into an AI-first era.

Apple stock remains inexpensive despite post-earnings surge

While AAPL is already up a remarkable 55% versus its 52-week high at the time of writing, JPM’s senior analyst Samik Chatterjee continues to see a positive setup for the tech stock ahead.

Even after the post-earnings rally, Apple is trading at about 30x forward earnings – a meaningful discount compared to previous “super cycle” peaks, Chatterjee argued in his latest research note.

For example, during the 5G upgrade cycle, AAPL stock’s multiple surpassed 32x.

With the current valuation sitting below those historical highs, Apple has significant “room to run” as the market begins to price in a multi-year AI upgrade cycle, he added.

Chatterjee’s “buy” rating on the iPhone maker comes with a price objective of “$315”, indicating potential upside of another 20% from here.

Why services weakness doesn’t matter much for AAPL shares

While services sales came in slightly shy of Street estimates ($30.01 billion versus $30.07 billion expected), JPMorgan is urging Apple shares’ investors not to overreact.

In his research note, Samik Chatterjee noted Apple possesses “multiple levers” for growth beyond the App Store, ranging from iCloud expansions to its burgeoning advertising business.

More importantly, the bull case for services is shifting toward AI integration.

The upcoming multi-year partnership to integrate Google’s Gemini into the Apple ecosystem, and a total Siri revamp, is expected to create new high-margin revenue streams.

These AI-driven “intelligent services” could notably boost per-user monetization, far outweighing any temporary softness in traditional App Store gaming revenue, the analyst told clients.

How to play Apple Inc in 2026

While Apple’s iPhone revenue topped Street estimates by more than $6.5 billion in the first quarter, the road for AAPL shares moving forward appears even brighter.

Despite industry-wide concerns regarding soaring RAM and NAND prices, JPMorgan expects margin pressures from higher memory costs to remain “limited” due to Apple’s favourable long-term supply contracts.

Furthermore, Apple’s gross margin came in about 70 basis points higher than expected in Q1, and the investment firm expects its operating expenses to track lower in the current quarter, exhibiting discipline management in a high-spend environment.

As these lower-than-expected costs combine with robust iPhone demand and AI roll outs, Apple is poised for significant earnings-per-share (EPS) leverage.

This combination of top-line growth and bottom-line efficiency is expected to drive Apple shares toward new record territory in the coming months.

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Exxon Mobil Corporation is scheduled to release its financial results for the fourth quarter of 2025 before the market opens on January 30. 

Market expectations, as reflected by the Zacks Consensus Estimate, place the company’s earnings at $1.68 per share for the quarter. 

The figure represents a slight year-over-year improvement of 0.6% from the earnings reported in the corresponding period last year.

In terms of analyst sentiment leading up to the report, the earnings estimate has seen a mixed trend over the past month, with three upward revisions counterbalancing a single downward adjustment. 

For the company’s revenue, the Zacks Consensus Estimate stands at $83.2 billion. 

If realised, this would indicate a marginal decline of 0.3% compared to the actual revenue figures from the fourth quarter of the prior year. 

Investors and analysts will be closely watching the report for insights into the company’s operational performance and the impact of global energy market dynamics.

Over the last four quarters, Exxon consistently surpassed the consensus earnings estimate, achieving an average positive surprise of 5.7%.

Factors influencing Exxon’s performance

ExxonMobil anticipates a sequential decrease in December quarter upstream earnings, ranging from $800 million to $1.2 billion, as disclosed in its recent 8-K SEC filings. This expected decline is attributed to lower liquid prices.

An analysis of US Energy Information Administration (EIA) data provides insight into oil price trends during the December quarter. 

The average Cushing, OK West Texas Intermediate spot prices showed a decline over the quarter, moving from $60.89 per barrel in October to $60.06 per barrel in November and settling at $57.97 per barrel in December. 

This downward trend followed higher prices in the preceding quarter, where average commodity prices were $68.39, $64.86, and $63.96 per barrel in July, August, and September, respectively, according to the EIA. 

This weakening crude pricing environment is expected to negatively impact the upstream segments of major integrated energy companies, including BP plc and Chevron Corporation.

Regarding natural gas, Exxon anticipates that a change in gas price could lead to either a $100 million sequential increase or a $300 million decrease in its upstream earnings.

ExxonMobil anticipates a sequential increase in its December quarter earnings from the Energy Products business unit, ranging from $300 million to $700 million. 

This positive outlook is likely attributed to the favorable soft crude pricing environment experienced in the fourth quarter of 2025, which benefited its refining operations.

Stock performance and outlook

Over the past year, Exxon Mobil’s stock experienced a significant jump of 25.9%. 

Comparing this to other integrated energy majors in the same period, BP plc saw a surge of 20.9%, while Chevron Corporation registered a smaller gain of 8.6%.

ExxonMobil currently appears relatively overvalued, as its share price has outperformed both BP and Chevron. 

This is reflected in XOM’s trailing 12-month Enterprise Value/EBITDA (EV/EBITDA) ratio of 8.84, which represents a significant premium to the industry average of 5.43.

While softer crude prices may have negatively impacted Exxon’s upstream business in the fourth quarter, the integrated energy major maintains a favorable long-term perspective. 

This optimism is underpinned by its significant presence in key areas: the Permian Basin, the most prolific oil and gas region in the US, and offshore Guyana. 

Specifically in the Permian, Exxon has enhanced its well recoveries by up to 20% through the use of lightweight proppant technology.

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Global markets faced renewed pressure on Friday as investors digested signals around the next US Federal Reserve chair, escalating trade threats from President Donald Trump, a deepening selloff in cryptocurrencies, and policy moves in Indonesia following sharp equity volatility.

Asian markets slide as Fed chair speculation lifts dollar, yields

Stocks across Asia fell sharply while the US dollar and Treasury yields rose after President Donald Trump said he had firmed up his choice for the next Federal Reserve chair, with reports pointing to Kevin Warsh as the likely nominee.

MSCI’s broadest index of Asia-Pacific shares outside Japan dropped as much as 0.7%, extending the previous day’s declines and marking its biggest one-day slump in the past month.

S&P 500 e-mini futures fell 0.39%, while Nasdaq e-mini futures slid 0.5%.

Market moves accelerated after Reuters reported that Warsh had visited the White House on Thursday, citing a source familiar with the matter.

Bloomberg News separately said the Trump administration was preparing to nominate him as the next Fed chair.

While Warsh is seen as supportive of lower interest rates, investors focused on his views around balance sheet restraint. “Warsh is on record as saying he prefers lower rates,” Damien Boey, portfolio strategist at Wilson Asset Management in Sydney, said in a Reuters report. “But the trade-off that he makes with lower rates is that he wants the Fed to have a smaller balance sheet.”

The US dollar index rose 0.3% to 96.481, reversing some recent weakness. “We’ve definitely seen some dollar buying straight away on the back of it,” said Tim Kelleher, head of institutional FX sales at Commonwealth Bank in Auckland. “He’s known to the markets and will probably calm things down slightly.”

The yield on the 10-year US Treasury climbed 4 basis points to 4.265%.

Fed funds futures now imply an 86.6% probability that the central bank will keep rates unchanged at its March meeting.

Trump threatens to decertify Canada-made aircraft, float 50% tariffs

Separately, Trump escalated tensions with Canada by saying he would decertify “all aircraft made in Canada” and impose a 50% tariff on those planes unless American-made Gulfstream jets are certified in Canada.

“Canada is effectively prohibiting the sale of Gulfstream products in Canada through this very same certification process,” Trump wrote on Truth Social. “If, for any reason, this situation is not immediately corrected, I am going to charge Canada a 50% Tariff on any and all Aircraft sold into the United States of America.”

The comments specifically referenced Bombardier’s Global Express business jets, though Trump did not clarify the legal mechanism for decertification.

No executive order has been released, and aviation certification decisions are traditionally handled by the Federal Aviation Administration.

“Using aircraft safety as a tool in a trade war is just an incredibly bad idea,” said Richard Aboulafia, managing director at AeroDynamic Advisory in a CNN report.

Canada-made CRJ regional jets are widely used by US airlines on feeder routes.

According to Cirium, 648 such aircraft operate in the US, accounting for more than 2,600 flights and 175,000 passenger seats daily. “It would be a transportation disaster,” Aboulafia said, if all Canadian-made aircraft were grounded.

Bitcoin sinks as ETF outflows deepen

Cryptocurrencies extended losses, with Bitcoin falling as much as 3.9% to $81,102 in early Asian trading, its weakest level since Nov. 21.

The token is now down more than 34% from its October peak, with more than $1.5 billion in bullish positions liquidated over the past 24 hours, according to CoinGlass.

At the time of writing, Bitcoin was trading at $83,382, down 5% in the last 24 hours.

US-listed spot Bitcoin ETFs have posted three straight months of net outflows, draining $4.8 billion, Bloomberg data show.

Bitcoin’s slide has contrasted sharply with gains in gold.

“Suddenly, cryptocurrencies no longer appear to be an alternative to fiat money and a hedge against the not-so-responsible financial policies of major countries,” said Alex Kuptsikevich, chief market analyst at FxPro, in a Bloomberg report.

Indonesia fast-tracks stock exchange reform after rout

Indonesia said it will accelerate plans to demutualize the Indonesia Stock Exchange this year following a two-day equity rout triggered by an MSCI warning of a potential downgrade.

The reform aims to strengthen governance and attract new investors, Coordinating Minister for Economic Affairs Airlangga Hartarto said.

Officials are also preparing measures to boost confidence, including raising insurer allocation caps to capital markets.

Despite the volatility, the government said economic fundamentals remain intact, citing resilient domestic demand and ongoing structural reforms.

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Oil giant Chevron Corporation, the only US company currently producing oil in Venezuela, is set to report its fourth-quarter earnings before the market opens on Friday. 

Its operations in Venezuela are expected to be a key point of discussion, offering one of the first glimpses into the opportunity within the country for the sector.

With the stock recently hitting a 52-week high of $172.50, this report is critically timed. 

Following a major acquisition and in a challenging market, investors are closely evaluating whether the company’s core performance can justify its current, elevated valuation.

Major oil producers are operating in a complex trading environment characterised by a well-supplied crude market and fluctuating commodity prices. 

Global demand increases are predominantly driven by non-OECD nations. 

A key strategic development in this context is Chevron’s acquisition of Hess Corporation, a move that significantly boosts Chevron’s presence, particularly in vital production areas such as Guyana.

The upcoming earnings call on Friday is expected to deliver vital information concerning the timeline for achieving synergies from the integration, as well as updates on the advancement of these promising assets.

Estimates for Chevron

According to Benzinga Pro data, analysts project Chevron’s fourth-quarter revenue to be $48.57 billion, which represents a decrease from the $52.23 billion reported in the same quarter last year.

While the company has beaten analyst revenue estimates in six of the last 10 quarters, it has missed expectations in the most recent three consecutive quarters.

Chevron is expected to report a decline in fourth-quarter earnings per share (EPS) to $1.45, according to analysts. This is a decrease from the $2.06 EPS reported in the same quarter last year.

The company has surpassed analyst EPS expectations in two consecutive quarters. Looking at the broader trend, it has beaten EPS estimates in five of the last ten quarters.

A Barron report said Chevron is expected to report EPS of $1.42 for its fourth quarter, a decline from the $2.06 EPS recorded in the same period a year earlier.

Despite a year-end slump in oil prices for 2025 that negatively impacted results, the market has seen a rebound, with prices climbing about 10% since the beginning of the year. 

This recovery is reflected in Chevron’s stock, which has risen 12% year-to-date.

Global expansion

While the company has experienced rapid expansion in the US, particularly in the Permian Basin of Texas and New Mexico, where it yields approximately 1 million barrels per day, this domestic growth is now decelerating. 

Consequently, investor attention is increasingly moving abroad, focusing on the company’s quicker growth in locations such as Kazakhstan, Guyana, and the potential for expansion in Venezuela.

In addition to its activities in Guyana, Chevron’s renewed operations in Venezuela are significant. 

Operating under a license from the US government, the company has ramped up its shipments of crude oil to America. 

This heightened activity is increasingly vital for international oil distribution and US energy security.

Consequently, the financial implications of these Venezuelan operations will be a key focus when the latest results are analysed.

Joint ventures with Chevron currently account for approximately 240,000 barrels per day, or about a quarter of Venezuela’s total oil production, according to certain estimates. 

Chevron has indicated a potential to increase this production by 50% over the next 18 to 24 months, and is open to making larger, new investments, provided the right conditions are met.

“We will need to see significant investment in Venezuela’s oil infrastructure, following years of neglect,” ING Group analysts said in a report earlier this month. 

And in order for this investment to materialise, we will need to see foreign oil companies agree to invest in the domestic industry.

Favourable environment

Chevron is arguably best positioned to increase oil production in Venezuela due to its long history in the country. 

However, oil companies are currently hesitant to invest and are proceeding cautiously because the ongoing political uncertainty creates significant legal risks.

Chevron is the only US oil company operating in Venezuela, having received a special licence from the US government to continue to operate despite sanctions.

Chevron’s stock is also appealing to analysts because its free cash flow is projected to increase more significantly than its rivals in 2026. 

This anticipated rise is due to long-term capital investments in projects, particularly in Kazakhstan, beginning to yield returns.

A ‘Buy’ rating and a $188 price target have been assigned to the stock by Bank of America, partly due to this reason.

The stock has recently been trading at approximately $172.

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Despite a sharp, more than 4% slide on Friday—fueled by rumors of a potentially more hawkish Federal Reserve chair—gold remains on course for its strongest monthly gain since 1980, as geopolitical and economic uncertainties continue to drive investors toward the traditional safe-haven asset.

Prices had come under pressure as investors resorted to booking profits after the yellow metal on COMEX breached the $5,600 per ounce on Thursday. 

After hitting new session highs, both gold and silver saw sharp reversals. Additionally, spot gold initially surged past $5,595 per ounce, and silver briefly topped $120 per ounce, but both metals subsequently retreated sharply.

“In this environment, gold is increasingly being used as a source of liquidity rather than a traditional safe-haven asset,” Ewa Manthey, commodities strategist at ING Group, said in a note. 

Market participants will be focused on two key events: the forthcoming US Producer Price Index (PPI) report on Friday and developments regarding US President Donald Trump’s selection for the new Federal Reserve (Fed) Chair.

Market drivers and economic outlook

Heading for its sixth consecutive monthly increase, gold prices have already climbed over 20% in January.

This puts the current month on track for the largest monthly gain seen since 1980.

Speculation is mounting that former Fed Governor Kevin Warsh will be named as the replacement for Fed Chair Jerome Powell, with President Trump announcing on Thursday his intention to reveal his selection on Friday.

Lallalit Srijandorn, editor at FXStreet, said in a report:

A more dovish chair would increase bets on further interest-rate cuts this year, which could lift the gold price. 

Lower interest rates could reduce the opportunity cost of holding Gold, supporting the non-yielding precious metal.

The dollar saw a recovery from its multi-year lows, partly due to the Federal Reserve’s decision on Wednesday to maintain current interest rates.

Despite this, the dollar is still set for its second consecutive weekly drop.

The strengthening dollar impacts gold prices by making the greenback-priced commodity more costly for international purchasers.

Expectations in the market remain for two interest rate reductions in 2026, according to the CME FedWatch tool.

Meanwhile, customs data released on Thursday indicated that gold exports from Switzerland to the UK reached their highest level since August 2019.

The UK is home to the world’s largest over-the-counter gold trading hub.

Geopolitics and price forecast

On the geopolitical front, Iran countered a warning from Trump, which followed a US attack, by threatening to retaliate against the US, Israel, and their allies. 

Trump’s warning on Wednesday urged Iran to negotiate a “fair and equitable deal” at the table, suggesting that a failure to do so would result in a much more severe US attack.

Gold initially fell to a daily low, dropping below $5,100, but then reversed course to recover toward $5,300 overnight. 

This retracement suggests that some traders are realizing gains, as indicated by the Relative Strength Index (RSI) moving from approximately 89 down to 79, according to a FXStreet report.

Should gold prices drop below $5,100, the critical support level for buyers to watch is $5,000, according to the report.

At the time of writing, the COMEX gold contract was at $5,200.16 per ounce, down 2.9%, while the silver contract was down 3.7% at $110.210 per ounce. 

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The FTSE 100 Index continued its rally this week and was hovering near its all-time high as market participants reacted to the key earnings by some American companies and Lloyds Bank. 

It was trading at £10,170, a few points below the all-time high of £10,240. This article explores some of the top Footsie companies to watch next week.

BT Group (BT.A) and Vodafone (VOD) to release earnings 

British telecom stocks like BT Group and Vodafone will be in the spotlight as they publish their trading statements on Thursday next week. 

These earnings come as the two giants continued to diverge. BT Group stock has retreated by over 12% from its highest level in 2025, while Vodafone has jumped by over 60% in the last 12 months. Vodafone is trading at its highest level since 2018.

BT Group stock has underperformed the market because of its struggling business-focused segment, whose revenue has continued falling. Also, the company’s broadband business continues to lose thousands of customers a month.

Vodafone, on the other hand, is doing relatively well now that its German business has returned to growth and its UK business is improving following the Three acquisition.

Shell (SHEL)

Shell is another top FTSE 100 company to watch next week as it released its financial results. These results come as the stock is hovering near its all-time high. It has jumped by nearly 10% from its lowest level this month.

Shell and other energy companies are benefiting from the ongoing crude oil price rally because of rising tensions in the Middle East now that Trump has sent a large armada to the region and Iran has warned of a prolonged fight.

The most recent results showed that Shell announced a new $3.5 billion share buyback program as its adjusted earnings rose to $5.4 billion and its capital expenditure dropped to $4.9 billion. Its net debt dropped to $41.2 billion during the quarter.

Entain (ENT)

Entain, the parent company of Ladbrokes, Coral, BetMGM, Bwin, and Eurobet will be another top FTSE 100 Index company to watch next week as it releases its results.

These numbers come at a time when the stock has crashed to 620p, its lowest level since May 1 last year and 40% below its all-time high. Other similar stocks have also plunged, with Flutter Entertainment moving to $168 in New York, down from $313 in August last year.

DraftKings stock price has crashed to $29 from last year’s high of $53.47, while Sportradar has slipped to $18.48 from a high of $32.2 in August. 

The most recent results showed that Entain’s Net Gaming Revenue (NGR) rose by 6% in the third quarter, with the full year revenue expected to grow by 7%.

GlaxoSmithKline (GSK)

GSK is another top FTSE 100 stock to watch next week. It has jumped by 53% from its lowest level in 2024 and its business continues to do well.

The company recently issued its pre-announcement earlier this year, meaning that the final numbers will not have a major impact on the stock.

Its results showed that its turnover will be an increase of between 6% and 7%, while its core operating profit will be between 9% and 11%.

The announcement came after the company reached a deal with the Trump administration to lower drug prices and plans to invest $30 billion in R&D in the US.

Some of the other top FTSE 100 shares to watch next week will be Unilever, Beazley, DCC, and Compass Group.

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The CAC 40 Index retreated this week after LVMH, its biggest constituent company, published weak results that cast doubt on the luxury sector recovery. It retreated to a low of €8,070, down sharply from the year-to-date high of €8,396. This article explores some of the top French stocks to watch next week.

In a statement this week, LVMH said that its revenue rose by 1% in the final quarter of the year, higher than what analysts were expecting. However, sales at the closely watched fashion and leather goods division fell by 3%, a sign that the recovery was still not there yet. Historically, LVMH’s performance hits the CAC 40 Index because it is the biggest constituent company.

BNP Paribas (BNP)

BNP Paribas, the biggest bank in France, will be the top CAC 40 Index stock to watch as it publishes its financial results on Thursday.

These numbers will come as the blue-chip company was trading near its all-time high. It has jumped by over 220% in the last five years and by 56% in the last 12 months.

BNP Paribas’ performance has mirrored that of other European banks, including Lloyds, Commerzbank, and Deutsche Bank.

Its most recent results showed that its revenue rose by 2.5% to €12.51 billion in the third quarter, while the operating income rose by 5% to €5.7 billion.

The upcoming results are expected to show that it business continued doing well in the fourth quarter as key parts of its business thrived. Additionally, the company will benefit from the ongoing recovery in the investment banking business.

Crédit Agricole and Société Générale

The other top CAC 40 Index companies to watch next week will be Credit Agricole and Société Générale, two of the top banks in the country. Like BNB Paribas, these banks have done well, with their shares soaring by 35% and 140% respectively in the last 12 months. 

The two companies are expected to publish strong financial results and boost their guidance as Lloyds Bank and Deutsche Bank did this week. They are all benefiting from the relatively resilient economy and the strong net interest income. 

Publicis Groupe (PUB)

Publicis Groupe is another CAC 40 Index company to watch next week as it releases its financial results on Monday. These numbers come as its business continues to face substantial challenges. Its stock has dropped to 83 euros, down by over 9% from its highest point in December.

Publicis performance has been relatively better than that of other advertising agencies. For example, the WPP share price has crashed by over 60% from its highest point in 2025.

Publicis Groupe’s financial results were better than expected, with the CEO noting that it experienced no slowdown in client demand. Its organic revenue growth was 5.7%, and its guidance for the full-year being 5.5%.

More CAC 40 Index companies like Kering, TotalEnergies, Dassault Systèmes, Hermes, L’Oreal, and Schneider Electric will publish their numbers a week later.

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Apple delivered a powerful start to the fiscal year with first-quarter earnings that exceeded expectations and an outlook pointing to growth of up to 16% in the current quarter.

Yet alongside the upbeat forecast, the iPhone maker acknowledged a growing constraint that could cap its momentum: a global shortage of memory chips.

Chief executive Tim Cook said memory had “a minimal impact” on margins in the December quarter but warned it could have “a bit more of an impact” in the March quarter.

Apple suggested that demand for its products, particularly iPhones, could be even stronger if it had access to sufficient components.

Although the current supply issues are partly linked to advanced-node chip manufacturing, Cook acknowledged that rising memory prices would affect Apple as well.

The company is exploring “a range of options” to manage the situation, he said, but declined to provide details on how Apple is responding to the AI-driven shortage that is reshaping the global semiconductor market.

AI demand triggers a global memory crunch and astronomical price rise

The rapid ramp-up of AI infrastructure is placing unprecedented strain on the global memory market.

AI workloads demand vast amounts of memory, and the current shortage is partly the result of manufacturers diverting production away from consumer electronics toward higher-margin chips tailored for artificial intelligence.

Rather than expanding output of conventional DRAM and NAND used in smartphones, PCs, and other devices, major memory makers are prioritising data-centre technologies such as high-bandwidth memory (HBM) and advanced DDR modules.

The shift has tightened the supply of mainstream memory and pushed prices higher across the market.

The shortage of memory chips, including DRAM and NAND used for short-term data storage, has intensified as artificial intelligence workloads expand at an unprecedented pace.

Companies such as Nvidia, AMD, and Google are absorbing large volumes of memory for AI chips and data-centre infrastructure, often securing priority supply.

At the same time, production remains concentrated among a small group of manufacturers.

Samsung Electronics, Micron Technology, and SK Hynix together produce more than 90% of global memory, leaving the market highly sensitive to shifts in demand.

Prices have risen sharply as a result.

Memory prices surged by 50% in the final quarter of 2025 and are expected to climb a further 40% to 50% by the end of the first quarter of 2026, according to Counterpoint Research, driven largely by data-centre operators willing to pay steep premiums to secure supply.

“I have tracked the memory sector for almost 20 years, and this time really is different,” says Avril Wu, senior research vice president at Taipei, Taiwan-based TrendForce, which tracks the global semiconductor industry in a WSJ report.

“It really is the craziest time ever.”

MS Hwang, a research director at Counterpoint Research who has been in the memory industry for more than 30 years, says while rapid price appreciation will continue for now, it’s hard to gauge memory-chip pricing beyond mid-2027.

He predicts they will soon be considered one of the pricier components in a device, rising from under 10% to as much as 30% of the total cost of phones and other gadgets.

Memory makers reap the benefits

While hardware manufacturers grapple with cost pressures, memory producers are enjoying a surge in profitability.

Samsung Electronics reported a threefold increase in quarterly profits, hitting a new record, driven by strong demand for AI servers and memory chips.

“Looking ahead to Q1 2026, the DS Division expects AI and server demand to continue increasing, leading to more opportunities for structural growth,” the company said.

“In response, the Division will continue to focus on profitability via a strong emphasis on high-performance products,” it added.

SK Hynix has also reported record profits, supported by soaring demand for high-bandwidth memory.

The company said its revenue from such products more than doubled in the previous year, helping it achieve record annual sales and operating profit.

“We see SK Hynix as one of the biggest AI winners in Asia, driven by its leadership in high-bandwidth memory and strong overall memory competitiveness,” said Ray Wang, an analyst at SemiAnalysis.

Rising risks for hardware manufacturers

According to IDC, the effects of the memory shortage are uneven, producing clear winners and losers depending on supply-chain resilience and the degree of vertical integration.

Manufacturers concentrated in the lower end of the market are likely to feel the sharpest pain.

Companies such as TCL, Transsion, Realme, Xiaomi, Lenovo, Oppo, Vivo, Honor, and Huawei operate on thin margins, leaving them far more exposed to rising component costs.

As memory prices climb, their profitability will come under significant pressure, leaving them little choice but to pass on some, if not most, of the additional costs to consumers.

Morgan Stanley analysts warned in a recent note that a pricing “supercycle” in memory chips increasingly threatens hardware manufacturers’ earnings as they head into the next fiscal year.

They added that with hardware original equipment manufacturer (OEM) valuations already near all-time highs, “we believe it’s time to de-risk exposure” to global hardware original equipment manufacturers and original design manufacturers “where memory is a significant input cost.”

Morgan Stanley in November downgraded several hardware firms, including Dell, HP, and Hewlett Packard Enterprise, while maintaining a more optimistic outlook for companies such as Seagate Technology and Western Digital.

Source: Potential contraction in the global smartphone market alongside an increase in average selling prices (ASP) by IDC

“We think cost inflation, especially on DRAM and NAND, could be a sizable drag to margins in the coming year, particularly if the cost inflation doesn’t slow down,” wrote Evercore analyst Amit Daryanani.

However, Daryanani argued that Apple and Dell are relatively well protected.

He cited Apple’s scale and long-term supply-chain agreements, as well as Dell’s greater exposure to commercial customers, as factors that could cushion the impact of rising memory costs.

“In the high end of the market, Apple and Samsung face pressure but are structurally hedged. Its cash reserves and long-term supply agreements allow it to secure memory supply 12-24 months in advance,” said IDC.

Even so, Apple faces a tangible challenge.

Memory can account for 10%-15% of the total bill of materials for high-end smartphones, according to industry estimates, making sustained price increases difficult to absorb indefinitely.

Apple’s strategic response

Apple appears to be recalibrating its product strategy in response to supply constraints and rising component costs.

According to Nikkei Asia, the company is prioritising production of its most premium iPhone models for 2026 while delaying the rollout of its standard model.

The strategy shift towards maximising revenue and margins from high-end devices is a response to memory and materials costs increase.

The US tech giant plans to prioritise the launch of its first foldable iPhone alongside two non-folding models with enhanced cameras and larger displays in the second half of 2026, while the standard iPhone 18 is expected to be pushed back to the first half of 2027, the report said.

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Gold and silver prices came to a screeching halt on Friday as the precious metals experienced wild swings to the downside. 

Silver prices on COMEX, which peaked above $120 per ounce earlier this week, fell below $100 on Friday. 

Meanwhile, gold prices briefly fell below the crucial mark of $5,000 per ounce earlier on Friday, with the yellow metal now trading around $5,109.74 an ounce. 

Sharp correction hits precious metals

Prices have remained volatile throughout this week, with both silver and gold hitting a series of record highs.

Gold on COMEX hit a record high above $5,600 per ounce as experts increasingly forecast a price of $6,000 later this year. 

Just as quickly as it rose, the price of gold and silver corrected downward again at the end of the week.

“The reason for the correction are rumors that US President Trump will announce Kevin Warsh as the successor to Fed Chair Jerome Powell today,” Thu Lan Nguyen, head of FX and commodity research at Commerzbank AG, said in a report. 

The markets see Warsh as a more hawkish candidate than, for example, Kevin Hassett, who was seen to have high chances for the position at times and is considered a Trump loyalist.

Fed Chair speculation drives downside volatility

As a former FOMC governor, Warsh is viewed as a serious and experienced candidate.

“However, we would be cautious about reading too much into this,” Nguyen added. 

The US President’s desire for significantly lower interest rates is clear and appears to be a sustained position.

Consequently, pressure on the Fed is likely to persist. 

Even if Kevin Warsh were Fed Chair, he would probably face continued attacks if he failed to deliver the rate cuts the President expects.

“We therefore continue to see a high probability that the central bank will yield to pressure to at least some extent and cut interest rates more than is currently priced in by the market,” Nguyen said. 

This suggests that the gold price will remain well supported.

Technical factors and dollar rebound

She added that the extent of the correction in gold suggested that investors were waiting for an opportunity to book profits.

This is likely true for silver as well, which has seen a meteoric rise so far in 2026. 

Silver is now trading roughly 20% lower after hitting a record high on Thursday, when it traded above $120 per ounce for the first time in history.

Additionally, the dollar rebounded on Friday, which put pressure on silver and gold prices. 

A stronger dollar makes commodities priced in the greenback more expensive for overseas buyers, thereby limiting demand. 

Confidence in the dollar was boosted, and fiscal outlooks were stabilised, following a rebound that stemmed from a series of macro developments. 

Among these was the reported agreement between President Trump and Senate Democrats to avert a government shutdown.

On Friday, the gold/silver ratio, which indicates how many ounces of silver are required to purchase one ounce of gold, increased to 50.01 from 46.28 on Thursday.

“Overall, the current pullback in Silver prices appears largely driven by technical adjustments and profit-taking after an exceptional rally,” Ghiles Guezout, analyst at FXStreet, said in a report. 

Fundamentals, supported by geopolitical risks, political uncertainty in the United States and persistent US Dollar weakness, continue to argue in favor of sustained interest in silver over the medium term.

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Tesla Inc. posted its first annual revenue decline in 2025, underscoring how political shifts and growing consumer unease with Elon Musk’s activism are complicating the electric-car maker’s growth story just as competition intensifies.

The company said fourth-quarter revenue fell 3% from a year earlier to $24.9 billion, broadly in line with analyst expectations, bringing full-year sales to $94.8 billion, also down 3%.

Net income slides

Adjusted net income slid 16% in the quarter to $1.8 billion, topping Wall Street estimates but highlighting mounting pressure on profitability.

The performance marks a turning point for a company that spent years redefining expectations of growth in the global auto industry.

Tesla has been hit by President Donald Trump’s decision to roll back key US electric-vehicle incentive programs, a move that has raised effective purchase prices for consumers.

At the same time, sales in the US and Europe have softened as some buyers recoil from Musk’s increasingly vocal political positions, including support for far-right parties.

Vehicle deliveries in the fourth quarter fell 16% from a year earlier to 418,227 units, missing market expectations and cementing Tesla’s loss of its crown as the world’s largest EV maker to China’s BYD.

The drop in volumes fed directly into margins, with operating margin slipping to 5.7% from 6.2% a year earlier, a far cry from the double-digit levels Tesla once touted as proof of its manufacturing edge.

No Optimus robot yet

Rather than doubling down on traditional models, Musk has leaned harder into a long-term vision centred on autonomy and robotics.

Tesla is pitching self-driving Cybercabs and humanoid Optimus robots as the company’s next growth engines, arguing they could unlock trillion-dollar opportunities. Yet execution remains elusive.

Tesla has yet to produce a single Optimus robot at scale and trails rivals such as Alphabet’s Waymo in deploying vehicles that operate in US cities without human safety drivers.

Investors, for now, have largely backed Musk’s ambition.

In November, shareholders approved a new stock-based compensation plan that could eventually be worth up to $1 trillion if a sweeping set of targets is met.

A Delaware court last month reinstated a $56 billion pay package that had been struck down as excessive, reinforcing Musk’s grip on the company even as financial performance cools.

The tension between Tesla’s near-term challenges and its long-term promises is sharpening.

With EV incentives fading, price competition intensifying and political risk entering the demand equation, Tesla’s core car business is under strain.

Whether bold bets on autonomy and artificial intelligence can offset those headwinds remains the central question for investors heading into 2026.

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