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The rally in artificial intelligence (AI) stocks has reversed course as markets get wary about tech companies’ spending spree without commensurate growth in earnings. The apathy is reflected in price action, and three of the “Magnificent 7” constituents, namely Amazon (AMZN), Microsoft (MSFT), and Tesla (TSLA), are trading with nearly or well above double-digit year-to-date (YTD) losses.
Other constituents have also been quite volatile, and Meta Platforms (META), which surged after reporting an impressive set of numbers for Q4 2025, has also pared gains. Apple's stock (AAPL), meanwhile, has remained steady and is up around 2% for the year. The price action looks all the more reassuring as it comes amid the brutal tech sell-off. Let's explore Apple’s outlook after its YTD outperformance.