U.S. stock market update: Apple down 9.78%, chip supply shortages drag down growth, Jefferies lowers target price

U.S. Stock Market Midday Update

Apple fell 9.78%, with increased trading volume. Based on recent key news:

1. On July 31, Apple warned that insufficient advanced chip capacity would drag down growth prospects, leading to a pre-market plunge of over 7%. The company expects revenue growth of 9% to 11% for the current quarter, below Wall Street's expectation of 12%. JP Morgan analysts pointed out that the supply-demand imbalance may delay sales. Source: Zhitong Finance

2. On July 31, Apple's financial report showed that supply chain pressures led to a decline in profit margins, with the stock price dropping 9.3% at one point in the morning session. The company expects a gross margin of 47% to 48% for the September quarter, down from 50% in the June quarter. Source: MarketWatch

3. On July 31, Jefferies lowered Apple's target price from $308.92 to $285.56, reflecting market concerns about its future growth. Source: MarketWatch The technology sector is facing supply chain pressures, with widespread impacts.

Stocks with High Trading Volume in the Industry

SanDisk fell 1.21%, with active trading. Based on recent key news:

1. On July 29, SK Hynix's financial report fell short of expectations, leading to a significant decline in the storage sector. Although SK Hynix's operating profit in the second quarter increased by 557%, it was below market expectations, causing the stock price to plummet by 17%, with SanDisk's stock following suit, dropping over 4%. Source: Jinshi Data

2. On July 29, breakthroughs in Chinese chip technology triggered panic selling in the market. Investors are concerned that low-cost domestic supply from China will impact the market, leading to significant declines in storage stocks like Micron and SanDisk. Source: Coin Bureau

3. On July 30, hedge funds liquidating positions led to a rebound in AI storage stocks. The Situational Awareness fund completed its liquidation, easing selling pressure, and SanDisk's stock surged over 25%. Source: Seeking Alpha The AI storage sector is experiencing increased volatility, requiring attention to policy changes.

Western Digital rose 4.52%. Based on recent key news:

1. On July 28, Seagate Technology released a strong financial report, with revenue and profit margins exceeding expectations, driving a collective rise in storage chip stocks. Seagate expects revenue and earnings per share to continue growing in future quarters, boosting market confidence in AI storage demand, with Western Digital's stock rising over 6% after hours;

2. On July 28, Western Digital director Martin I. Cole sold shares, causing stock price fluctuations during the session. The sale price ranged from $424.05 to $461.23, reducing direct holdings to 21,625 shares, with mixed market reactions to the insider trading;

3. On July 29, analysts maintained a hold rating on Western Digital, believing that five other stocks are more attractive. Nevertheless, Western Digital still benefits from growing storage demand, leading to a rise in stock price. The storage industry shows strong demand, driven by AI growth Seagate Technology rose 3.84%. Based on recent key news:

4. On July 29, Seagate Technology announced its fourth-quarter results, with revenue increasing by 48.5% year-on-year to $3.629 billion, exceeding market expectations, and adjusted earnings per share of $5.71, with the stock price rising over 7% in after-hours trading. Source: Guandian.com

5. On July 28, Seagate Technology benefited from a surge in storage demand driven by AI, with the financial report showing a net profit of $1.29 billion, and the stock price rising by more than 10% at one point in after-hours trading. Source: Jinshi Data

6. On July 29, Morgan Stanley raised Seagate Technology's target price from $1,035 to $1,187, reflecting the market's optimistic expectations for its future growth. Source: Morgan Stanley AI demand drives growth in the storage industry, risks need to be monitored.

Stocks ranked among the top in industry market capitalization

Dell Technologies-C rose 1.31%. Based on recent key news:

1. On July 31, Dell Technologies faced execution risks for multi-billion dollar AI server backlog orders, with shortages of key components potentially delaying delivery times and affecting revenue recognition. Analysts pointed out that the traditional enterprise storage and non-AI server sectors are experiencing weak growth, leading to an unfavorable product mix and increased stock price volatility.

2. On July 30, technical indicators showed that Dell Technologies' stock triggered multiple "pivot top" sell signals, with market multiples significantly exceeding actual earnings per share growth, leading institutional ratings to be downgraded to "hold," putting pressure on the stock price.

3. On July 29, quarterly data showed a decline in traditional storage revenue, with the commercial PC refresh cycle recovering slowly, failing to provide sufficient cash flow buffer to offset low-profit AI hardware expansion, resulting in increased stock price volatility. Competition in the AI hardware market is intensifying, with rising costs