Apple and Meta announced a partnership to bring Meta’s open-source AI models to high-end Macs, but investors are still selling some AI hardware stocks.

The debate around AAPL isn’t about the addition of yet another model. It’s about whether the AI story can shift from data centers to devices in users’ hands. The partnership gives local model execution on Macs a concrete use case. A review of U.S. markets on October 15, meanwhile, showed software stocks gaining while hardware stocks, including server and networking equipment makers, came under pressure. Investors seem to be distinguishing between “growing AI usage” and “all hardware makers stand to benefit.”

But there’s an easy mistake to make here: just because models can run on Macs doesn’t mean users will upgrade, let alone that Apple has secured a new source of software revenue. Reports also differ on when Apple Intelligence will launch in China and what features it will include, so those details remain unverified.

If local AI fails to drive real-world use for some time, how much longer will the market remain patient with Apple’s device-centered story?