Apple’s (AAPL) stock declined almost 2% on the first day of Apple CEO Tim Cook’s final Worldwide Developers Conference (WWDC). The reason was more perceived letdown on the artificial intelligence front, which reawakened chatter that Apple won’t dominate in the AI era.

The analysis: Apple used this year’s WWDC to try to make one thing clear: It won’t be left behind in AI. On the face of things, what Apple showed off was OK.

The headline announcement was a rebuilt AI Siri that can understand context, handle more complex tasks, and work across Apple’s ecosystem in a way the old Siri never could. Apple also rolled out iOS 27 and updates across the Mac, iPad, Watch, and Vision Pro, packing in new AI-powered tools for photos, messaging, productivity, and search. New child-safety features and privacy-focused AI capabilities were front and center. The big question for investors is whether these long-awaited AI upgrades are enough to reignite excitement around the iPhone and keep Apple competitive in the AI arms race.

The early indication from Wall Street is that while visually impressive, Apple didn’t blow everyone away with its AI prowess.

KeyBanc analyst Brandon Nispel was particularly critical of Apple.

“We found AAPL’s WWDC AI updates to be lacking in the context of what we thought was generally a high bar for advancements of Apple Intelligence,” Nispel explained in a note. “We saw: no clear signs of monetization of AI; Apple’s reliance on Google Gemini; very few use cases where Apple App integration was materially beneficial; and a slightly better standalone Siri, which is still worse than other LLMs. WWDC was where Apple Intelligence was supposed to drive an upgrade cycle, but this seems to no longer be the case, even though some of the most advanced on-device model features require iPhone 17 or newer.”

Brutal.

AlphaSpace intel: Apple had to impress from start to finish at WWDC as the stock rallied about 25% from the late March lows, according to Yahoo Finance AlphaSpace. Speaking of no margin for error, Apple’s stock now trades at a trailing 12-month price-to-sales ratio of 10.1 times — the highest level in its history.

The bottom line: Yawn. What else are you coming up with for the AI era, Apple? The bulls eagerly await something more transformational, just like the good old Apple days.

Hopefully, incoming CEO John Ternus has some old-school Apple magic to sprinkle on investors at WWDC 2027.

Brian Sozzi is Yahoo Finance’s Executive Editor and a member of Yahoo Finance’s editorial leadership team. Follow Sozzi on X @BrianSozzi, Instagram, and LinkedIn. Tips on stories? Email brian.sozzi@yahoofinance.com.