Apple’s positioning as a relative outsider to the artificial intelligence spending boom – which had propelled its shares earlier in 2026 – has flipped into a liability as market sentiment pivots back toward AI beneficiaries, according to a report by Bloomberg News’ Ryan Vlastelica.
For much of the first half of the year, investors treated Apple as an “anti-AI” play. The company largely avoided the massive capital expenditures on data centers and computing infrastructure that rivals poured into generative AI. That capital-light approach, relying instead on partnerships for AI features, appealed to traders skeptical of whether the heavy spending by other tech giants would deliver adequate returns. Apple shares benefited, helping the stock reach a record high in late July.
That dynamic has reversed. Since the July 28th peak, Apple shares have declined about 10%, pressured by disappointing earnings results. At the same time, strong reports from Microsoft, Amazon, and Alphabet eased concerns about overspending on AI, prompting a rotation into companies seen as direct AI winners, along with semiconductor firms and other related stocks.
Over a recent multi-week stretch, Apple ranked among the worst performers in the S&P 500. Meanwhile, the Nasdaq 100 rose and the Philadelphia Stock Exchange Semiconductor Index (SOX) advanced more sharply. This marks a clear reversal from July, when Apple gained while the Nasdaq 100 and SOX declined sharply amid questions about the sustainability of AI capital spending.Apple’s stock has shown increasing detachment from the broader market. Its 40-day correlation with the S&P 500 has approached zero (the lowest in years), and its correlation with the chip index has turned negative—meaning the shares have often moved in the opposite direction of semiconductor stocks.
Portfolio managers note the see-saw nature of investor attitudes toward AI capital expenditure. When fears of excess spending dominate, Apple’s restraint looks smart. When confidence returns, the company does not capture the same upside as peers more directly tied to the AI infrastructure cycle.
The AI buildout is also creating headwinds for Apple itself. Surging demand for memory chips from data centers has driven up component costs (memory can account for a meaningful portion of smartphone production expenses). Elevated prices raise concerns about pressure on Apple’s margins or the need for higher iPhone prices, which could weigh on demand – particularly ahead of an expected foldable iPhone. Some analysts have cited these risks in downgrading the stock.
Apple’s valuation has also left limited room for error, according to Vlastelica. The shares trade at a premium multiple relative to other top U.S. technology firms, he says, making them more vulnerable to any shortfall in growth or margins.
In short, the same anti-AI characteristics that once served as a safe haven for investors have become baggage in a market that has renewed its appetite for AI exposure. The report underscores how quickly sentiment around capital spending and technology leadership can shift, leaving even the largest companies exposed to rotation risk.
MacDailyNews Take: Apple isn’t “anti-AI” at all. Clearly, Apple is a bit late to AI, however, after using Siri AI in Apple’s OS betas, the company is well-positioned in AI now (or soon will be with the public releases of their next-gen OSes). Profit from the naysayers’ discount AAPL!
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