Apple Under Pressure to Acquire AI Firms as Stock Slumps

Investors are urging Apple to make strategic moves in artificial intelligence, with Citigroup analyst Atif Malik highlighting potential gains from acquisitions. The tech giant's stock has dropped 16% year-to-date amid regulatory challenges and lackluster AI innovation, contrasting with its peers' aggressive expansion in the sector.

Perplexity AI emerges as a prime acquisition target, valued at $14 billion. Wedbush's Dan Ives calls a potential $30 billion deal a "no-brainer" that could accelerate Apple's search engine ambitions. The company's last major purchase—Beats Electronics in 2014 for $3 billion—now appears conservative compared to industry standards.

Geopolitical risks compound Apple's challenges. April's proposed U.S.-China reciprocal tariffs triggered a 19% three-day stock plunge, exposing vulnerabilities in its China-dependent supply chain. While tariffs were paused, the incident underscored structural risks facing the Cupertino-based firm.