Apple Drops 10% as AI Winners Rebound After Big Tech Earnings
Updated
Updated · Yahoo Finance · Aug 18
Apple Drops 10% as AI Winners Rebound After Big Tech Earnings
3 articles · Updated · Yahoo Finance · Aug 18
Summary
Since its July 28 record high, Apple has slid 10% after disappointing earnings, leaving it among the 25 worst S&P 500 performers over the past three weeks.
Microsoft, Amazon and Alphabet helped flip investor sentiment by easing fears that AI spending was excessive, sending major AI spenders, chipmakers and other beneficiaries higher.
Apple’s strategy of relying on AI partnerships rather than joining the costly infrastructure buildout has turned from an advantage into a drag as investors rotate back toward AI-linked stocks.
Over the same three-week stretch, the Nasdaq 100 gained 8% and the Philadelphia Semiconductor Index rose 14%, reversing July’s pattern when Apple climbed 6.8% while semiconductors sank 21%.
Apple’s divergence from the broader market has deepened: its 40-day correlation with the S&P 500 is near zero—the lowest since 2013—and its correlation with chip stocks has turned negative.