Apple Faces Investor Pressure for Major AI Acquisition Amid $640B Market Value Drop

Apple Inc. is facing significant investor pressure to revamp its artificial intelligence (AI) strategy amid a 16% stock decline in 2025, which has erased over $640 billion in market value. Investors and analysts urge Apple to break from its historical reluctance toward large acquisitions by purchasing or investing heavily in established AI firms, such as the AI startup Perplexity AI, which is valued at $14 billion. This potential acquisition is seen as a strategic move to bolster Apple's AI capabilities and revitalize its product lineup, particularly as competitors like Meta have gained market momentum through aggressive AI investments. Internal leadership changes, including the retirement of Chief Operating Officer Jeff Williams and the departure of CFO Luca Maestri, signal a broader readiness for organizational restructuring to address these challenges. CEO Tim Cook maintains the board's confidence, but Apple is under increasing pressure to innovate rapidly and integrate advanced AI features to regain investor and market confidence. Overall, the company is weighing bold moves in acquisitions and talent recruitment to overcome its AI shortcomings and reverse its stock stagnation.