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Apple’s stock has lost roughly 5% this year so far, making it the only member of the Magnificent Seven in the red for 2025 besides Tesla.
Apple appears to have lost more AI talent, fueling worries about its progress with the emerging technology. Wall Street doesn’t expect its iPhone 17 launch next week to change that, and some think any enthusiasm for the event could mean a chance to sell the stock.
Apple’s (AAPL) lead AI researcher for robotics, Jian Zhang, has left the company to join Meta (META), Bloomberg reported Tuesday. That would mark the latest in a string of exits, bringing the tally of recent moves from the company’s Foundation Models team—responsible for Apple Intelligence, the AI system built into its devices—to some 10 members, the report said. (Apple and Meta didn’t respond to requests for comment in time for publication.)
The report reinforced some investors’ concern that the iPhone maker lags peers in the space. The Apple iPhone 17 launch event, set for next week, might not fix that impression.
The company has said the event, set to kick off Monday at 7 a.m. ET, will be “awe dropping.” (You’ll be able to watch the streamed event here.) Analysts have suggested it could focus on improvements that wouldn’t change the company’s AI trajectory.
Bank of America analysts told clients last week that they’ll be on the lookout for new AI enhancements, but that investors’ expectations are fairly muted ahead of what could be a “sell-the-news” event, anticipating largely form-factor improvements such as a thinner phone with a better front camera, and an updated Apple Watch portfolio.
Goldman Sachs and Citi analysts echoed those sentiments, with Citi suggesting product launches next year could drive stronger demand, after a series of delays in highly anticipated features like an AI-enhanced Siri.
At the company’s developers conference in June, Senior Vice President of Software Engineering Craig Federighi said the AI Siri features “need more time to reach our high quality bar,” and that more information would be released “in the coming year” following reports they may not be available until 2026.
The iPhone maker had previously suggested they would become available earlier this spring, after teasing them at its developers conference last year, where it unveiled its Apple Intelligence. At the time, Apple’s stock surged on excitement about Apple’s AI story, but that early AI momentum has faded while investors wait for more signs of progress—or an acquisition, after CEO Tim Cook recently told investors Apple would consider buying other companies to boost its AI capabilities.
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Bloomberg reported late Wednesday that Apple is currently working on developing a new AI-powered system called “World Knowledge Answers” for launch next year, with plans to integrate it into Siri as part of the delayed revamp, along with its Safari internet browser, among other things. Apple did not immediately respond to a request for comment.
Apple’s stock finished Wednesday up nearly 4% on the heels of a favorable antitrust ruling for Google that would allow the iPhone maker to continue receiving payments for preloading Google search products in Apple devices. It’s lost roughly 5% this year so far, making it the only member of the Magnificent Seven in the red for 2025 besides Tesla (TSLA).
This article has been updated since it was first published to include additional information.
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