Apple Shares Post Worst One-Day Drop in 10 Months on AI and Memory-Cost Fears
Apple shares fell 4% Tuesday, marking the steepest one-day decline since April 2025 as investors weighed AI-driven competition and rising memory-chip costs. This selloff occurred despite January data showing Apple was the only smartphone maker to post year-over-year growth in China.
1. Record One-Day Stock Drop
On Tuesday, Apple shares tumbled 4%, marking the steepest daily decline since April 2025 and underperforming the broader market as the Nasdaq Composite fell 2.03% during the session.
2. AI Competition and Chip Cost Fears
Investor concerns centered on intensifying AI-driven competition in smartphones and personal computers, while forecasts of higher memory-chip prices have stoked fears of margin compression for Apple’s upcoming product cycles.
3. January China Sales Growth
January sales data revealed Apple was the only major smartphone vendor to achieve year-over-year growth in China, highlighting regional resilience despite a global slowdown in handset demand.
4. Market-Wide Tech Weakness
Apple’s pullback contributed to a wider technology selloff, with the S&P 500 down 1.57% and the Dow dropping over 600 points as tech names led declines into the holiday weekend.