While all of the Magnificent 7 fell yesterday, one of them is decidedly not like the others. <\/p>\n
Apple<\/a> fell harder than the rest Thursday, down 5% and notching its worst day since last April. Yet it\u2019s arguably the most insulated from fears about overspending on AI \u2014 the nominal reason for the overall market\u2019s decline<\/a>.<\/p>\n AI isn\u2019t integral to Apple\u2019s current success. The company just reported its best quarter ever without a fully functional AI product<\/a>. And unlike many of its Big Tech peers, which are planning to spend hundreds of billions of dollars on data centers and GPUs, Apple\u2019s capex actually declined last quarter<\/a>. As a result, Apple, whose larger hardware business keeps its services arm more insulated from pure software headwinds<\/a>, has largely avoided AI-related sell-offs. <\/p>\n That\u2019s what makes this drubbing notable.<\/p>\n Apple\u2019s problem isn\u2019t overspending on AI. It\u2019s under-delivering on it.<\/p>\n Earlier this year, Apple announced it would leverage Google\u2019s<\/a> Gemini AI model to power its iPhones \u2014 a move that should have upped its AI prowess without emptying its coffers. But repeated delays to iPhone AI features, including reports this week<\/a> that key upgrades are being pushed back again, suggest execution \u2014 not spending \u2014 is the issue. Investors aren\u2019t worried Apple is burning cash; they\u2019re worried it\u2019s falling behind.<\/p>\n There are expectations that Apple will deliver material AI monetization, with Wedbush Securities analyst Dan Ives suggesting that this could add $75 to $100 to its share price<\/a> in the \u201ccoming few years,\u201d but its track record so far is not inspiring any confidence.<\/p>\n That anxiety may help explain why Apple is now the most sold stock among retail investors this year. JPMorgan estimates retail investors have pulled a net $539 million from Apple \u2014 more than double the next most sold name. Retail traders aren\u2019t reacting to capex discipline or FTC warning letters about Apple News<\/a>. They\u2019re reacting to momentum, and right now, Apple\u2019s AI story lacks it.<\/p>\n","protected":false},"excerpt":{"rendered":"While all of the Magnificent 7 fell yesterday, one of them is decidedly not like the others. Apple…\n","protected":false},"author":2,"featured_media":289734,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[345,343,344,85,46,125],"class_list":["post-289733","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-artificial-intelligence","tag-artificialintelligence","tag-il","tag-israel","tag-technology"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/289733","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=289733"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/289733\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/289734"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=289733"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=289733"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=289733"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}