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Apple Inc.’s (NASDAQ:AAPL) recent WWDC event has been a disappointment on the AI front. A CNBC headline summed it up perfectly by saying that the company failed to meet even the
Apple: Risk Of Falling Behind In AI Race Increases After Disappointing WWDC Event
Summary
- Apple Inc.’s recent WWDC did not show any improvement on the AI front.
- Apple is at risk of being left behind as all other big tech companies ramp up their investment in new AI tools and infrastructure.
- The biggest impact can be on the iPhone upgrade cycle, which is already showing lower-than-expected results despite the hype of Apple Intelligence.
- Apple’s services revenue is also facing headwinds from recent legal rulings, which can be a perfect storm for the company.
- AAPL stock is still trading at over 25 times the estimated earnings for the fiscal year ending September 2026, with a modest 6.5% YoY EPS growth in this fiscal and another 9% for the next fiscal.
I have worked in the technology sector for over 4 years. This included working with industry stalwarts like IBM. I have done my MBA in finance and have been covering various blue chip stocks for the past 6 years. Having hands-on knowledge in the technology sector has helped me gain valuable insights into the ups and downs of this sector and predict winners and losers more accurately.
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