Apple(US:AAPL) The Economic Times·2026-02-18 12:44Core Viewpoint - Apple's correlation with the Nasdaq 100 Index has significantly decreased to 0.21, the lowest since 2006, indicating its divergence from tech peers amid the AI arms race [1][10]. Group 1: Market Performance - Apple reported a 3.2% gain, outperforming the 0.1% drop in the Nasdaq 100 Index, marking the third instance this month where it exceeded the index by at least 3 percentage points [9]. - The stock is up 1.7% for February, contrasting with a 3.3% decline in the Nasdaq 100 and a 7.5% slump for the Magnificent Seven Index [10]. - Despite recent volatility, including an 8% slump, Apple's stock performance remains relatively insulated from AI-related disruptions [11][10]. Group 2: Financial Outlook - Analysts project an 11% revenue increase for Apple's fiscal year ending in September, followed by a deceleration to 6.7% growth in the 2027 fiscal year [13][16]. - The stock is trading at approximately 30 times estimated earnings for the next year, which is higher than most peers in the Magnificent Seven, except for Tesla, and above the Nasdaq 100's 24 level [14][16]. - There are concerns regarding Apple's growth potential compared to other tech companies, with some analysts suggesting it is not a bargain and lacks real growth [15][16]. Group 3: Strategic Positioning - Apple is not participating in the current capital expenditure spending surge and does not have major business lines at risk from emerging AI technologies [5][10]. - The company is reportedly accelerating the development of three AI-powered hardware devices, indicating a strategic shift despite challenges in integrating AI into existing products [6][5].