Apple tops Q2 earnings on strong iPhone and China sales; semiconductor stocks set for earnings week as AI demand strains Mac supply

Apple reported Q2 earnings per share (EPS) of $2.01 on revenue of $111.2 billion, beating analyst estimates of $1.96 EPS and $109.66 billion revenue. iPhone revenue grew 20% to $56.99 billion, and China revenue reached $20.49 billion, ahead of expectations of $18.9 billion.

Apple CEO Tim Cook stated that Mac mini and Mac Studio demand from AI developers and enthusiasts running the AI agent platform OpenClaw is outpacing supply, and the company expects it could take several months to reach supply-demand balance for these systems.

Semiconductor stocks including Lattice Semiconductor Corporation, Advanced Micro Devices (AMD), and Arm Holdings (ARM) are reporting Q1 earnings this week. The PHLX Semiconductor Index surged more than 40% and had its best month since February 2000 in April, with AMD up 70%, Lattice up 25%, and Arm up 40% over the past month heading into earnings.

Elon Musk's legal trial against Sam Altman and OpenAI is proceeding in California, with Musk accusing them of duping him into donating money by misrepresenting OpenAI's nonprofit status before converting to for-profit.