Apple stock price decouples from Nasdaq amid AI boom; analysts say this is a good thing

Glonghui, February 18｜In the past 20 years, Apple (AAPL.US) has never been as "decoupled" from its tech peers as it is now, making it an attractive alternative for investors, especially as recent weeks have seen market volatility driven by artificial intelligence sweep through the stock market. Data shows that the 40-day correlation between Apple's share price and the Nasdaq 100 Index fell to 0.21 last week, the lowest level since 2006. This correlation has been steadily declining since reaching 0.92 in May last year. Apple's decision to largely "stand still" makes it particularly unusual compared to many of its competitors. A correlation of 1 means the two securities move in complete unison, while a reading of -1 indicates they move in exactly opposite directions. "The lack of correlation between Apple's share price and the overall market is absolutely a good thing right now," said Art Hogan, Chief Market Strategist at B. Riley Wealth. "We are in a 'whack-a-mole' AI environment, where investors are so nervous about the next sector to be disrupted that they often sell first and look for reasons later."