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The three-month correlation between Apple Inc. (NASDAQ:AAPL) and the Nasdaq 100 has dropped to -0.12, establishing an inverse correlation. Financial commentary publication The Kobeissi Letter stated this marks the metric “turning negative for the first time on record in data going back to the early 1980s.”

Historic Negative Correlation

The Kobeissi Letter reports that the correlation between Apple and the Nasdaq 100 has remained negative for two consecutive months. During this timeframe, Apple shares gained 9.7%, while the broader Nasdaq 100 index increased by 0.2%.

To provide historical context, the publication stated that in June 2025, the correlation stood at +0.90. Furthermore, between 2006 and 2025, the correlation never fell below +0.30. The Kobeissi Letter concluded that this divergence between Apple and the rest of the technology sector is “unprecedented.”

BREAKING: The 3-month correlation between Apple, $AAPL, and the Nasdaq 100 is down to -0.12, turning negative for the first time on record in data going back to the early 1980s.

The correlation between $AAPL and the Nasdaq 100 has now remained negative for 2 consecutive months.… pic.twitter.com/YXMOaxgBLe

— The Kobeissi Letter (@KobeissiLetter) October 27, 2026

Closing the Valuation Gap

Alongside this decoupling, financial research platform Trading Terminal observed a sudden shift in tech valuations. According to Trading Terminal, the market capitalization gap between Nvidia Corp. (NASDAQ:NVDA) and Apple shrank from $903 billion on Oct. 6 to $181 billion within three weeks, erasing 80% of the difference.

During this span, Apple added approximately $197 billion in market value, whereas Nvidia lost approximately $525 billion. Co-founder and CTO of Trading Terminal, Andrew Aziz questioned this shift, asking, “Are investors suddenly preferring Apple’s predictable steady cash flows over the volatile AI infrastructure?”

$APPL closed a $903 BILLION valuation gap within 3 weeks

Are investors suddenly preferring Apple's predictable steady cash flows over the volatile AI infrastructure? https://t.co/5ZwPdRx75o

— Andrew Aziz (@BearBullTraders) October 27, 2026

Investor Flight to Safety

Trading Terminal attributed the rapid valuation shift to investors rotating toward Apple’s “predictable iPhone and Services cash flows.” The platform noted that Nvidia was pressured by “AI infrastructure debt, circular financing and hyperscaler return concerns.”

Trading Terminal also highlighted the valuation disparity, arguing that Apple trades at a roughly 43% higher earnings multiple despite Nvidia’s substantially faster revenue growth. The platform characterized the movement as a “massive divergence in what investors currently view as safe.”

Noting Apple and Nvidia report earnings on Nov. 2 and Nov. 17, respectively, Trading Terminal stated the valuation winner “may be determined by which company the market fears less, not which company grows faster.”

$AAPL is now worth almost as much as $NVDA despite growing revenue 6.6× slower.

On October 6:$NVDA: $5.78 trillion$AAPL: $4.87 trillion
Gap: $903 billion

Today:$NVDA: $5.25 trillion$AAPL: $5.07 trillion
Gap: $181 billion

In three weeks, 80% of the valuation gap… pic.twitter.com/d3L2jUOliE

— Trading Terminal (@MarketAtlas) October 27, 2026

How Has AAPL Performed in 2026?

The stock was higher by 29.12% over the last year, up 27.68% year-to-date, and higher by 1.77% over the last month. The stock closed up 0.93% at $347.10 on Tuesday.

Benzinga’s Edge Stock Rankings indicate that AAPL maintains a positive price trend in the short, long, and medium terms, with a moderate growth score.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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