Key Points
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An estimated 75% of S&P 500 market returns since November 2022 have come from AI stocks.
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Apple has outperformed many AI stocks over the past six months.
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Apple expects 10%-12% revenue growth in its current quarter, driven by strong iPhone sales.
A report from JP Morgan Asset Management reveals that AI-related stocks have been pivotal to S&P 500 gains since ChatGPT’s launch, contributing 75% to overall market returns. Major tech companies, including Microsoft, Amazon, and Alphabet, are heavily investing in AI infrastructure with hopes of significant future profits. However, an MIT study indicates that 95% of generative AI projects fail to yield measurable ROI, raising concerns about the sustainability of these investments.
Apple, distinguishing itself from AI-centric firms, has focused on its core products and is not as deeply involved in AI investment, which may position it favorably amidst the current AI landscape. The company reported a record $416 billion in revenue for fiscal year 2025, and fourth-quarter performance showed an 8% year-over-year increase. iPhone sales are projected to reach 247.4 million units in 2025, marking a 6.1% increase compared to the previous year.
