Apple investors are growing impatient with the delays in AI developments following WWDC.

      **Summary**

      Apple investors are growing frustrated with the company’s AI strategy following a lackluster WWDC. The stock is trading at a premium that reflects an upgrade cycle that has been persistently postponed, with the new Siri launching as a beta relying on Google’s technology.

      Investors are becoming increasingly impatient with Apple’s AI approach. After the Worldwide Developers Conference failed to instill confidence in Wall Street regarding the anticipated upgrade cycle, the stock experienced its worst week since February.

      "There’s some exhaustion with Apple and AI," stated Tim Chubb, chief investment officer at Girard, a division of Univest Wealth, in an interview with Bloomberg. "It’s challenging to extend them the same benefit of the doubt we once did due to the numerous delays."

      **The WWDC Disappointment**

      Apple's revamped Siri AI assistant is set to debut this autumn, though it will be in beta form. The company has reconstructed Siri on a custom model from Google Gemini, running on Nvidia Blackwell GPUs, making it heavily reliant on its largest competitor's infrastructure.

      Initially, the new AI features will not be accessible in the European Union or China, two crucial markets for Apple. This marks the second instance of delays for Apple Intelligence in Europe, now without a timeline for resolution, following a stalemate with EU regulators concerning Digital Markets Act obligations.

      Analysts largely disregarded the situation. According to Bloomberg, no analysts modified revenue forecasts for 2027 or 2028 post-conference, indicating that the presentations did not introduce anything new to the market.

      **High Valuation Yet Lacking Execution**

      Apple's stock is valued at more than 33 times the estimated earnings for the next 12 months, significantly above its 10-year average of 23. It ranks as the second most expensive stock among the Magnificent Seven, only surpassed by Tesla.

      This premium presumes an AI-enhanced iPhone upgrade cycle that has been promised since 2024 but continually delayed. The stock surged 15% in May due to pre-WWDC optimism, enjoying its best month since July 2022, but soon relinquished many of those gains.

      Expected revenue growth is around 15% in fiscal 2026, which concludes in September, an increase from 6.4% in fiscal 2025. Analysts predict a slowdown to 8.6% in fiscal 2027 and further deceleration afterward, making the current valuation difficult to justify without a distinct catalyst.

      **The Bull Case and Its Limitations**

      The opposing viewpoint is clear: Apple possesses a substantial cash reserve, a solid balance sheet, ongoing share buybacks, and an installed base exceeding a billion devices. Moreover, it is developing a third-party AI extensions framework for Siri, which could transform the iPhone into a distribution platform for Claude, ChatGPT, and Gemini.

      Shares experienced a boost on Tuesday after Bloomberg revealed developments in camera-equipped AirPods, a next-gen foldable phone, and a 20th-anniversary iPhone, anticipated for 2027. However, the report cautioned that the timing remains "fluid and could change," a sentiment that could aptly summarize Apple’s entire AI strategy at this point.

      "It wasn’t terrible, but it didn’t inspire great confidence either," remarked Jed Ellerbroek, portfolio manager at Argent Capital Management, in an interview with Bloomberg. "When it comes to Apple and AI, I feel like Charlie Brown with the football."

      Needham analyst Laura Martin was more direct, stating Apple "did nothing to indicate it can charge more for its AI tools and capabilities or save costs by utilizing AI," pointing out its "over-dependence" on Alphabet, its main competitor in the smartphone market.