The AI stock rally has reversed, with Amazon, Microsoft, and Tesla trading with significant YTD losses. Meanwhile, Apple’s stock has remained steady, up around 2% for the year. Apple’s outperformance is attributed to a crash in AI stocks and the company’s focus on emerging technology, including AI partnerships.

Apple’s financial performance has been stellar, led by strong iPhone sales and a 16% YoY rise in revenues. The company expects further revenue growth in the current quarter, driven by its Services business, which saw a 14% YoY increase in revenue. Despite higher memory prices, Apple’s gross margin and earnings per share have shown improvement.

Apple’s approach to AI has focused on privacy, releasing features that are personal and integrated across platforms. While other tech giants spend aggressively on AI, Apple has been more measured, focusing on share repurchases. With a market cap surpassing Microsoft’s and slightly below Nvidia’s, Apple may appeal to investors seeking defensive bets amid the tech sell-off.

Despite some target price hikes post-earnings release, Apple’s stock may not see significant upside in the short to medium term based on its forward P/E multiple. However, the stock remains a hedge against the tech sell-off. Analyst sentiment towards Apple remains positive, with around 60% rating it a “buy” or higher, positioning it favorably compared to other tech stocks.

Read more at Yahoo Finance: How to Play AAPL Stock