Apple’s Resilience: Why Not Being an ‘AI Stock’ is a Strength Right Now

Apple has been viewed as an AI laggard, and that’s actually been good for its stock. Unlike many tech companies, it hasn’t experienced the recent selling pressure impacting AI-focused shares.

Apple continues to benefit from strong iPhone upgrades, particularly from users replacing older devices.

What was once considered a weakness for Apple’s stock is now proving to be an advantage as the broader tech sector faces headwinds.

As the beginning of november, Apple’s stock (AAPL) has outperformed both the tech-heavy Nasdaq Composite Index (COMP) and the S&P 500 (SPX). This is largely because AI stocks have been significantly affected in recent trading sessions, but Apple isn’t heavily categorized as an AI play.

“Apple shares have shown resilience compared to their mega-cap peers as they have significantly less exposure to the AI cycle,” D.A. Davidson analyst Gil Luria told MarketWatch.

Microsoft’s stock (MSFT) is nearing a 10% drop from its recent high, potentially entering correction territory alongside Nvidia (NVDA), Amazon.com (AMZN), and Tesla (TSLA). Meta’s stock (META) is already in a bear market, down over 20% from its recent peak. Though, Apple and Alphabet (GOOG) (GOOGL) shares are holding strong, down less than 3% from their recent highs.