Apple’s AI Strategy Offers Alternative for Investors

In an ocean of artificial intelligence (AI)-related angst, Apple is reportedly offering investors a life preserver.

That’s according to a report Wednesday (Feb. 18) from Bloomberg News, which pointed out that the iPhone maker’s correlation to the Nasdaq 100 Index fell to 0.21 last week, the lowest level in 20 years.

The report said this measure has been on the downswing since May, with Apple’s AI strategy making it an outlier among many other tech giants.

“Apple’s lack of correlation is 100% a positive right now,” said Art Hogan, chief market strategist at B. Riley Wealth. “We’re in an environment of AI whack-a-mole, where investors are so nervous about what will be disrupted next they’re shooting first and asking questions later.”

“It could have less room to rise in a tech rebound, but I don’t think it gets sold, because it sits at the front of the list of companies that look insulated from AI,” Hogan added.

Bloomberg added that investors have spent the last month in an AI-driven “doom loop,” on one hand worrying that the massive spending on AI won’t pay off, and on the other concerned that AI will render a host of industries irrelevant.

Apple, however, isn’t at risk from either potential threat, the report added. It’s not taking part in the type of capital expenditure sprees its peers are engaged in, and doesn’t have a significant business line at risk from products such as Anthropic’s Claude.

The company has faced obstacles when it comes to weaving AI into its devices, the report added, but is said to be speeding up work on a trio of AI-powered products. These are all wearable devices: a pendant, AirPods and smart glasses.

Meanwhile, Apple last month reported record quarterly sales due in part to the iPhone, and is set to launch more new products early next month.

During the company’s earnings call, CEO Tim Cook framed Apple’s Apple Intelligence AI system as an operating system-level capability that can increase the value of its entire ecosystem and make room to monetize across hardware and services.

“We’re bringing Intelligence to more of what people love,” Cook told analysts. “And we’re integrating it across the operating system in a personal and private way. And I think that by doing so it creates great value and that opens up a range of opportunities across our products and services.”