Why are Apple shares rising while other tech stocks are falling?

Apple shares are rising as investors view the company as a safe haven amid fears that artificial intelligence will disrupt the software sector, while its hardware is expected to benefit from AI adoption.

What is Apple's current market capitalization?

Apple's market capitalization has surpassed $4 trillion, making it the second-largest company in the world.

How is Apple involved with AI technology?

Apple is expected to be a beneficiary of AI adoption, with its hardware like the iPhone serving as a central place for users to access AI services, and recently entered a deal with Google to power its AI technologies, including Siri.

Home / Business and Economy / Apple's Safe Haven: AI Fears Boost iPhone Maker

Apple's Safe Haven: AI Fears Boost iPhone Maker

5 Feb

•

Summary

Apple shares rose 1.8% while the Nasdaq 100 fell 2.4%.
Apple's market cap exceeded $4 trillion, surpassing Alphabet.
Investors see Apple hardware as a safe haven from AI disruption.

Apple's Safe Haven: AI Fears Boost iPhone Maker

Apple Inc. is currently outperforming the technology sector and the broader market, trading up 1.8% on Wednesday while the Nasdaq 100 Index declined by 2.4%. This divergence highlights Apple's position as a perceived safe haven for investors concerned about artificial intelligence disrupting the tech landscape.

Recent performance shows Apple up nearly 6% for the month, contrasting with the index's 3.3% decrease. This surge has pushed Apple's market capitalization past $4 trillion, reclaiming its position as the world's second-largest company, trailing only Nvidia Corp.

Analysts suggest that unlike software, AI disruption is not significantly impacting hardware, benefiting Apple. The company's recent quarterly results and forecast exceeded expectations, further bolstering investor confidence. This is in stark contrast to other tech giants facing pressure due to AI investments and potential growth impacts.