Many Apple fans and users were undoubtedly excited when the company announced Apple Intelligence. This was Apple’s response to AI from other companies such as Google and Samsung. Unfortunately, its launch left a lot to be desired, and now Apple Intelligence is making Wall Street investors worried about the company’s future.
Wall Street worried about Apple Intelligence
Out of all the Magnificent Seven stocks (seven of the biggest tech-focused US stocks), Apple has performed the worst. The company’s share prices were down over 15% as of Tuesday’s close. Together with Tesla, both companies are the only two out of the seven that have lost value in 2025.
It is believed that the terrible launch of Apple Intelligence is to blame for its poor Wall Street performance.
Like we said, when Apple first announced Apple Intelligence, many were eager to see what the company could do. Apple has a lot of money at its disposal, so using that to invest in AI makes sense. However, Apple Intelligence failed to deliver. The company initially advertised a bunch of features, but not all of them are available.
Apple was also supposed to give its beleaguered Siri virtual assistant a revamp. We all know how that went. This puts Apple much further behind the competition, especially against Google, which is quickly integrating Gemini across its products and services. However, not everyone thinks Apple is necessarily doomed.
According to TD Cowen analyst Krish Sankar, “The incomplete AI strategy is still the biggest overhang, but we think Apple still has approximately 1.5 years to effect a compelling solution.”
What will Apple do?
It is unclear what Apple’s plans for Apple Intelligence are at the moment. A revamped version of Siri was supposed to launch this year. But now, a 2026 launch is looking more and more likely.
There are rumors that Apple is interested in acquiring Perplexity. The AI company has been making a name for itself, especially with the recent launch of its AI-powered Comet browser. Acquiring Perplexity and its AI models could give Apple a much-needed boost. It could also potentially allow Apple to build up its walled garden even further. If it has Perplexity, it wouldn’t need other AI models.
Only time will tell if Apple’s AI efforts can prevail. So for now, Wall Street investors will have to decide if they have diamond or paper hands.
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