Meta and Apple bullish case rests on AI plans as inflation unsettles stocks

The Meta and Apple bullish case advanced by CNBC’s Investing Club came as US shares finished lower for the week despite a Friday rebound. CNBC reported that rising crude prices and Treasury yields revived concerns that inflation could influence the Federal Reserve’s next policy decision.

The Dow Jones Industrial Average fell 1.6% in the holiday-shortened week, while the S&P 500 declined 0.8% and the Nasdaq dropped 0.7%, CNBC said. Each index gained nearly 1% on Friday as oil prices and yields eased.

CNBC said West Texas Intermediate crude exceeded $100 a barrel on Thursday for the first time in almost four months amid heightened US-Iran tensions, before finishing the week more than 9% higher. The 10-year Treasury yield rose above 4.95% on Thursday, its highest point since October 2023, according to the network.

Inflation figures reported by CNBC added to the market focus. The producer price index increased 0.4% over the month, it said, while headline consumer prices also rose 0.4% in the month and 3.4% from a year earlier. Core CPI, which excludes food and energy, gained 0.3% in the month, CNBC reported.

CNBC said CME FedWatch pricing put the implied probability of a rate increase at the Federal Reserve’s September 15-16 meeting at 87%, compared with 58% a week earlier. That market-based measure reflects trading expectations rather than a confirmed policy outcome.

Why is CNBC bullish on Meta and Apple?

The Investing Club’s view is a stock-specific assessment, rather than a conclusion that the inflation and rate risks facing the wider market have passed. Its case for Meta Platforms centred on recent artificial-intelligence products and the potential to turn the company’s AI spending into commercial assets.

According to CNBC, Meta released its Muse Spark 1.3 model on September 2 and subsequently introduced the Muse personal AI agent. CNBC said the agent connects with Facebook, Instagram and WhatsApp, services it said reach 3.6 billion daily active users. The Club argued that the releases strengthened Meta’s longer-term AI opportunity. It also cited what it described as a relatively modest valuation, along with the possible future value of Meta’s computing capacity. Meta shares rose 5% over the week, CNBC said.

For Apple, CNBC pointed to the launch of the foldable iPhone Duo, which it said starts at $1,999, and to $100 price increases for the iPhone 18 Pro and Pro Max. The Club’s assessment was that the higher prices could help address memory-cost pressure without materially hurting demand.

CNBC also reported that Apple chief executive John Ternus described the iPhone as an “intelligent personal hub”, supported by a more capable Siri that could access more than 300,000 apps. The Club viewed deeper integration of AI into Apple’s installed device base as a potential advantage in personal AI agents. Apple shares gained nearly 4% for the week, CNBC said.

Neither company’s product claims, user figures, valuation measures or investment case were independently supported by company filings or announcements in the available reporting. They remain CNBC Investing Club’s stated views and should not be read as investment advice.

This story draws on original reporting from CNBC.