Apple’s AI Delays and 10% Stock Gain Trail Nasdaq’s 19%
AAPL•After WWDC, investors criticized delays and limited rollout of upgraded Siri and AI features, with key markets in the EU and China excluded at launch. Apple's shares have gained 10% this year versus the Nasdaq 100's 19%, trading at 33 times estimated next-year earnings, raising valuation pressure.
1. Investor Frustration Over AI Rollout
Investors expressed concern after WWDC revealed that the upgraded Siri assistant will only launch as a beta this fall and that new AI features will not be available initially in the EU or China, raising doubts about near-term revenue impact.
2. Market Exclusion Details
The phased launch excludes two of Apple’s largest iPhone markets—Europe and China—potentially delaying widespread feature adoption and reducing the impact of AI capabilities on global user engagement.
3. Stock Performance Against Nasdaq
Following a 15% rally in May, Apple shares have climbed only 10% year-to-date, markedly underperforming the Nasdaq 100’s 19% gain and posting their worst weekly showing since February.
4. Valuation and Analyst Expectations
Shares trade at more than 33 times projected next-year earnings, above the 10-year average of 23, with analysts forecasting nearly 15% revenue growth in fiscal 2026 before decelerating to 8.6% in fiscal 2027.
