The Apple stock looks even more amazing with broken chip stocks

Do not let the downtrend of KLA-Tencor (KLAC) scare you to stay long Apple (AAPL).

The Philadelphia Semiconductor index, a measure of the performance of chip securities known as "SOX," fell 2.5% on Thursday because of dismal comments from KLA-Tencor's CFO, Bren Higgins.

"We feel [December quarter] as if it was going to be a little less than we thought and we had indicated the second half of the company compared to the first half in terms of shipments, "said Higgins at the Citi Global Technology Conference. it would be flat at a single digit, and I think at the moment, given what I see today, it's probably about a few digits.

KLA-Tencor shares fell by 11%. Micron (MU) fell 9%, while Advanced Micro Devices (AMD) lost 3%.

Higgins' comments and the vicious market reaction should remind investors to stay with the biggest names in technology right now. Think of companies with dominant market positions and lots of cash, like the King of Apple Technology (AAPL).

"We believe that Apple is well positioned to support single-digit sales and low earnings for teens, even in a moderate iPhone growth environment, thanks to the allocation of services and capital," said Amit Daryanani, an analyst at RBC Capital Markets. "The coming iPhone cycle will result in healthy volume growth, even though average selling prices may experience year-to-year difficulties due to difficult comparisons.

KLA-Tencor who?

That's what Jim Cramer says about Apple's stock right now.

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