Lack of Apple’s AI advancements is pulling down its shares

Apple shares have fallen 15% this year, even as tech peers like Nvidia soar to all-time highs, throttled by their AI investments.

Investors worry the iPhone maker is lagging in artificial intelligence, facing rising tariff risks, slowing innovation, and key executive exits.

Wall Street believes the company has little time left to prove its AI strength. “Apple needs the AI story because that’s what’s being rewarded in the market,” says Dave Mazza, CEO of Roundhill Investments.

Tech analyst Dan Ives urges Apple to acquire Perplexity for around $30 billion, calling it a “drop in the bucket” compared to AI’s revenue potential.

Still, the tech company remains financially strong. Services now generate nearly 25% of revenue, and 60% of sales come from outside the US, where a weaker dollar helps. With $80 billion in cash, Apple can afford bold moves.