Shares of Apple Inc. rose on Wednesday, significantly outperforming the wider technology sector as investors increasingly treated the iPhone maker as a defensive play amid growing fears of disruption from artificial intelligence.
While the tech-heavy Nasdaq 100 slid 2%, Apple stock advanced 2%, marking its strongest relative outperformance versus the index in more than a year. The gap has been widening in recent weeks, with Apple up nearly 6% so far this month, compared with a 3% decline in the Nasdaq 100 over the same period.
The divergence follows Apple’s robust quarterly earnings report last week, which delivered record revenue and guidance that exceeded market expectations. The results reinforced investor confidence in the company’s earnings stability at a time when uncertainty is spreading across the tech sector.
Market participants are increasingly differentiating Apple’s hardware-centric business model from other technology firms that may be more exposed to rapid advances in AI. Newly released AI tools from Alphabet and startup Anthropic have triggered heavy selling across parts of the tech industry, as investors worry these innovations could undermine long-term growth for many software-focused companies.
The latest price action suggests that hardware-driven businesses like Apple are perceived as better insulated from near-term competitive threats posed by fast-evolving AI technologies, helping the stock stand out as a relative safe haven during the current tech selloff.
