Apple’s AI Lag Sparks Stock Decline Amid Regulatory Pressure
Apple's reluctance to aggressively pursue AI development has created a growing divergence from its Nasdaq peers. The stock's 40-day correlation with the Nasdaq 100 Index plummeted to 0.21 last week—the lowest level since 2006—as competitors race ahead in artificial intelligence. Market sentiment suggests further downside, with Polymarket predicting a drop to $240 by February's end from the current $263 level.
Technical setbacks compound the pressure. Delayed upgrades to Siri's voice command functionality have exposed reliability issues, contributing to a 5% single-session decline. Regulatory headwinds intensify the challenge, with FTC Chairman Andrew Ferguson issuing warnings about potential media sector violations.