This week, tech investors have been on edge. Even NVIDIA, a stock many thought was untouchable, took a hit on Monday, losing $589 billion in market value after China’s DeepSeek stirred up concerns about more efficient AI models. But Apple? Its stock has held steady, bouncing back 7% after a brief dip tied to the DeepSeek buzz.

Why the resilience? Unlike Google and Microsoft, Apple hasn’t gone all-in on generative AI. Its in-house offering, Apple Intelligence, launched last summer, hasn’t been a game-changer. The company’s “small model” approach contrasts with rivals’ massive, data-hungry AI systems. While Apple’s hyper-focused strategy avoids some common pitfalls, it hasn’t been flawless. For example, iOS 18’s news summaries had accuracy issues, forcing Apple to pause the feature.

Meanwhile, Apple’s challenges in China are growing. Over the holidays, iPhone sales dropped 18%, as local brands like Huawei, Oppo, and Xiaomi gained ground. Huawei’s comeback, fueled by its HarmonyOS, has been particularly tough for Apple.

Apple’s Vision Pro, another AI-driven project, hasn’t been a hit either. But there’s a silver lining: If AI turns out to be a bubble, Apple’s diverse product line could keep it afloat. The company’s focus on running AI locally on devices, rather than relying on massive servers, aligns with DeepSeek’s recent move to shrink its AI models for laptops. This could be a win for Apple in the long run.

As Apple gears up for its Q1 earnings report, investors will be looking for answers. How will the company compete in AI? What’s the plan for China? And with a Trump administration signaling a tough stance on big tech, what does the future hold?

One thing’s clear: Apple isn’t sitting still. Partnerships with OpenAI and potential ties to Google’s Gemini show the company is exploring all options. But with so many variables—AI, China, and politics—Apple’s next steps are anything but predictable.

Stay tuned for Thursday’s earnings call. It’s bound to be an interesting one.