Apple Leads AI Charge with Record Revenue and Strong Earnings

Apple's AI efforts have been quietly making strides this year, and its shares reflect it. With a YTD gain of 22.56% and 44.98% over the past year, Apple has become one of the top AI trades in the market.

The company's Q3 revenue hit $109 billion, up 16% from last year, with iPhone sales at $54.25 billion and Services at a record $30.74 billion. EPS of $2.02 beat expectations by 6.80%, marking the ninth straight earnings beat.

Apple's asset-light model delivers a 171% return on equity (ROE) and 32% operating margins, making it an attractive investment opportunity. The company's P/E ratio is 43, which may seem high compared to Microsoft and Alphabet, but its capital efficiency makes up for it.