Why Apples stock is plummeting
Once hailed as a top-performing global stock, Apple (NASDAQ: AAPL) has faced challenges since the beginning of 2024. In January, it lost its leading position to Microsoft (NASDAQ: MSFT) in terms of market capitalization, and now Nvidia (NASDAQ: NVDA) threatens to push it down to third place by June.
Despite maintaining its dominance in the smartphone industry, Apple abandoned its long-standing goal of entering the electric vehicle (EV) market. The company’s failure to capitalize on the artificial intelligence (AI) boom, unlike Microsoft, has been a significant factor in its lackluster stock performance.
Apple recently announced a partnership with OpenAI to integrate ChatGPT into its operating systems, aiming to bring AI capabilities to its devices. Surprisingly, this move did not have a substantial impact on Apple’s stock price, which continued to decline leading up to the announcement and afterward.
The public’s changing perception of AI, as seen in Microsoft’s Windows 11 integration and Adobe’s controversial policies, may explain the muted response to Apple’s AI partnership. There is growing skepticism and concern surrounding AI technology, with many viewing it as a mere buzzword rather than a revolutionary development.
Moreover, the overuse and potential misuse of AI by companies have contributed to its diminishing significance as a viable business strategy. The current iteration of AI technology may not necessarily lead to artificial general intelligence (AGI), raising doubts about its long-term impact.
Lastly, Apple’s reliance on an external AI model may have tarnished its reputation as an innovator, transforming it into a follower rather than a trailblazer in the tech industry. The company’s struggles reflect the evolving landscape of AI technology and the challenges faced by industry giants in adapting to these changes.
