Shares in US electronics giant Apple are drawing strong investor interest amid growing concerns about the outlook for investment in artificial intelligence-linked semiconductor stocks.
Bloomberg News noted that Apple, maker of the iPhone, saw its stock fall sharply last month following a disappointing unveiling of the anticipated AI features for its devices. However, the stock has since risen 16% from its low on June 25, adding $650 billion to the company's market capitalisation.
In morning trading on the day of publication, Apple shares rose 1.4% to reach a new record high. Over the same period in which Apple's stock gained 16%, the Philadelphia Stock Exchange Semiconductor Index fell approximately 10%, while the broader S&P 500 index rose around 3% and the Nasdaq 100 technology index gained just 0.3%.
Bloomberg said Apple's rally over the past two weeks, running counter to the trend among other technology stocks, points to mounting investor anxiety over heavy corporate spending on AI technology — while Apple has chosen not to join the race to build data centres, a decision that is being viewed as an advantage rather than a liability.
Mark Bronzo, senior investment strategist at Ray Strategic Partners, said: "There is fierce competition in the market, and Apple is currently benefiting because it is removed from the crisis afflicting AI companies." People are worried about what returns the major cloud computing companies can generate from their massive spending on AI infrastructure. There are also views suggesting that semiconductor companies have similarly overestimated potential gains. As a result, investors have returned to Apple as a stable, low-risk investment option.
Despite the recent pullback driven by concerns over the sustainability of AI computing expenditure, the semiconductor index remains up 76% from its level at the start of the year, putting it on course for its best annual performance since 1999.
At the same time, Apple shares have risen 17% so far this year, making it the best performer among what are known as the Magnificent Seven technology companies — a group that includes Nvidia Corp, Alphabet, Microsoft Corp, Amazon.com, Meta Platforms, and Tesla. Since reaching their peaks in May, shares in Alphabet and Amazon have each fallen more than 10%, while Microsoft stock has dropped 20% this year, putting it on track for its worst annual performance since 2022.
The rise in Apple's share price is all the more striking given that the company faces headwinds from a rapid increase in memory chip prices, which threatens its profit margins. Owing to the rise in chip prices, Apple announced on June 25 that it was raising prices across its entire range of Mac computers, iPads, and home devices — a move that caused the stock to record its worst single-day performance since April 2025.