Apple Shares Decline Amid AI Delay and Bearish Sentiment

Apple Inc AAPL Stock is experiencing significant selling pressure.

Currently, shares of the Cupertino, California-based company are down 10.85% year-to-date, 8.22% over the last month, and 1.56% just today.

Chart created using Benzinga Pro

Currently, Apple Stock displays ‘Bearish’ signals as it lingers below the eight, 20, 50, and 200-day moving averages.

The MACD (moving average convergence/divergence) sits at a negative 3.23.

Furthermore, the RSI (relative strength index) is at 29.89, indicating the Stock is in oversold territory—a scenario that typically invites a rebound. However, the absence of buying pressure and the negative MACD fail to support such a movement for Apple at this time.

In summary, Wall Street seems to be lacking enthusiasm for Apple right now.

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Morgan Stanley Warns of AI Delays Impacting Apple

In a notable move, Morgan Stanley has downgraded its price target for Apple from $275 to $252. The primary concern is the delay in Apple’s AI initiatives.

The anticipated upgrade to Siri—a significant factor for driving iPhone upgrades—has faced postponements, adversely affecting Apple’s sales forecasts for 2025 and 2026.

The firm now anticipates flat iPhone shipments in 2025 and only a modest 6% growth in 2026, with revenue and EPS projections falling short of consensus estimates.

AI Delays Put Apple’s iPhone Sales at Risk

Once seen as a pathway to an iPhone supercycle, the delayed rollout of Apple Intelligence has disappointed consumers. According to Morgan Stanley, half of iPhone users who opted out of upgrading to the iPhone 16 cited this AI delay as a significant factor.

Adding to Apple’s challenges, competitor Samsung is not standing idle. Its latest products, equipped with Google’s Gemini AI, are already entering the marketplace.

Moreover, Apple faces an additional $2 billion cost related to tariffs in 2025, compounding its difficulties.

While the forthcoming redesigned iPhone 17 may provide some respite, the reality remains that Apple’s execution on the AI front has been more misstep than success.

Will Apple Overcome Its AI Challenges?

Apple has encountered challenges before; both the AirPods and Apple Watch initially faced slow starts before achieving great success.

However, investors looking for a swift recovery may need to temper their expectations. The AI competition is still ongoing, but for now, Apple finds itself lagging while its Stock continues to feel the pressure.

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