{"id":821940,"date":"2026-11-02T17:58:09","date_gmt":"2026-11-02T17:58:09","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/821940\/"},"modified":"2026-11-02T17:58:09","modified_gmt":"2026-11-02T17:58:09","slug":"apple-has-turned-into-wall-streets-hedge-against-the-ai-trade-chart-of-the-day","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/821940\/","title":{"rendered":"Apple has turned into Wall Street’s hedge against the AI trade: Chart of the Day"},"content":{"rendered":"\n

When AI stocks get hit, investors have found a place to hide. It’s the company that has mostly sat out the AI spending race \u2014 Apple (AAPL<\/a>). <\/p>\n

Chip stocks have had plenty of rough days this year, and Apple has mostly shrugged them off. On the 46 days the Philadelphia Semiconductor Index (^SOX<\/a>) fell 2% or more, Apple rose on 30, about two out of every three. <\/p>\n

That’s new. From 1994 through last year, Apple rose on only about 1 in 6 of those days, and no year came anywhere close to this one, by Yahoo Finance’s calculations. <\/p>\n

\"Column<\/a> Yahoo Finance <\/p>\n

Apple and chip stocks have basically stopped moving together. Apple’s correlation with the chip index \u2014 a measure of how closely two assets move in step \u2014 turned negative in July and hit its lowest level on record in September. <\/p>\n

The payoff showed up Friday. Over the past month, Apple gained about 3% while the iShares Semiconductor ETF (SOXX<\/a>) tumbled about 17%. That gap pushed Apple back past Nvidia<\/a> (NVDA<\/a>) as Wall Street’s most valuable company Friday. <\/p>\n

\"Line<\/a> Apple stock rose about 3% over the past month as the iShares Semiconductor ETF fell about 17%. \u00b7 Yahoo Finance AlphaSpace <\/p>\n

It isn’t just a one-month thing, either. Apple is up about 27% this year, more than double the S&P 500’s (^GSPC<\/a>) gain. <\/p>\n

So why Apple? Follow the money. <\/p>\n

Over their past four reported quarters, Amazon (AMZN<\/a>), Alphabet (GOOGL<\/a>), Microsoft (MSFT<\/a>), and Meta (META<\/a>) spent more than $600 billion on capital expenditures<\/a> \u2014 the money companies invest in long-lasting assets like data centers and chips \u2014 much of it to build out artificial intelligence. Apple spent about $10 billion. <\/p>\n

\"Bar<\/a> Company filings, Yahoo Finance <\/p>\n

Investors have started to sweat that bill. Alphabet, Amazon, and Meta all just reported negative free cash flow<\/a>, meaning they spent more than their businesses brought in. Amazon’s cash burn hit a record<\/a>, and Alphabet’s stock just wrapped up its worst month ever<\/a>. No wonder investors have been rushing into Apple’s AI-light arms<\/a>. <\/p>\n

But a hedge isn’t a force field. <\/p>\n

Friday was chip stocks’ worst day since June, and Apple still fell about 1%. <\/p>\n

Apple can’t fully escape the AI boom, either. It’s paying more for memory chips, the same parts AI data centers are snapping up. Bank of America’s Wamsi Mohan estimated those costs will take a real bite out of iPhone profit margins, and he thinks Wall Street’s margin forecasts are too high into next year. <\/p>\n

“Our estimates are below Street heading into earnings,” BofA wrote in a note on Friday that kept a Buy rating on the stock. <\/p>\n

Apple reports its fiscal fourth quarter results after the bell Monday, with iPhone 18 sales in the spotlight<\/a>. Its outlook for December quarter margins will show whether the market’s favorite AI hedge has an AI problem of its own. <\/p>\n

Internal AI tools helped analyze interview transcripts, research, and draft this post. Humans reviewed, edited, and fact-checked this post before publication. <\/p>\n

Follow Jared Blikre on X @SPYJared<\/a> or email him at jaredblikre@yahooinc.com. <\/p>\n","protected":false},"excerpt":{"rendered":"When AI stocks get hit, investors have found a place to hide. It’s the company that has mostly…\n","protected":false},"author":2,"featured_media":821941,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[11456,554,733,4308,84,273,1294,4176,5555,1086,13908,5467,4377,1891,4517,4174,4769,4655,4204,4762,5556,5557,3356,5042,474,86,13909,56,54,55],"class_list":["post-821940","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-401k","tag-ai","tag-artificial-intelligence","tag-artificialintelligence","tag-business","tag-business-news","tag-economy","tag-finance","tag-financial-information","tag-investing","tag-investment-tools","tag-investor","tag-market-news","tag-mortgage","tag-mutual-funds","tag-personal-finance","tag-quote","tag-real-estate","tag-retirement","tag-stock","tag-stock-research","tag-stock-valuation","tag-stocks","tag-suze-orman","tag-tax","tag-technology","tag-track-portfolio","tag-uk","tag-united-kingdom","tag-unitedkingdom"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/821940","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=821940"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/821940\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/821941"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=821940"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=821940"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=821940"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}