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Busey Bank increased its position in Apple Inc. (NASDAQ: AAPL) by 0.4% in the undefined quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 959,110 shares of the iPhone maker's stock after purchasing an additional 4,064 shares during the quarter. Apple makes

The artificial intelligence boom has divided Big Tech into two camps. One group is spending at a pace rarely seen in corporate history, pouring hundreds of billions of dollars into data centers, custom chips, and power infrastructure. The other has largely stayed on the sidelines. 

Apple (NASDAQ:AAPL | AAPL Price Prediction) has avoided the AI spending arms race by choosing not to build frontier AI models that compete directly with OpenAI, Google, or Anthropic. That decision has protected its balance sheet while rivals load up on debt to fund ever-larger AI ambitions. Yet new reports suggest there is no free lunch in AI, and Apple’s lower-cost strategy may now be running into its own limits.

A Different Kind of AI Bet The AI capex spending spree numbers are stark:

Company Fiscal 2025 CapEx Fiscal 2026 CapEx Est. Amazon (NASDAQ:AMZN) $131.8 billion $180 billion to $200 billion Alphabet (NASDAQ:GOOG) $91.4 billion $180 billion to $190 billion Meta Platforms (NASDAQ:META) $72.2 billion $125 billion to $145 billion Microsoft (NASDAQ:MSFT) $64.6 billion $190 billion Apple $12.7 billion $14 billion Amazon, Alphabet, Meta Platforms, and Microsoft collectively spent $360 billion on capital expenditures in 2025, with Wall Street expecting another wave of spending through 2027 as each races to build larger AI infrastructure.

Apple took the opposite approach. Rather than chasing the most powerful foundation models, it focused on integrating AI features into its hardware ecosystem while relying on partners for many cloud-based capabilities. The strategy preserved Apple’s financial flexibility and helped it avoid the debt financing increasingly appearing across Big Tech as AI investments accelerate.

From a shareholder perspective, that restraint has been refreshing. Apple’s balance sheet remains one of the strongest in technology, and it hasn’t needed to match competitors dollar for dollar simply to stay in the AI race.

While rivals pour $360 billion into an AI arms race, Apple’s frugal strategy just hit a technical limit—forcing a high-stakes pivot to catch up. © 24/7 Wall St. The Cheap Path Isn’t Free That said, avoiding massive capital expenditures doesn’t eliminate the need for AI infrastructure.

According to The Information, Apple’s internally developed M2 Ultra chips have fallen short for the most demanding AI workloads. Instead of relying exclusively on its own silicon, the company has reportedly turned to Nvidia (NASDAQ:NVDA) accelerators hosted by Google to run portions of its AI computing needs. Reuters separately reported that Apple is now exploring acquisitions of AI chip startups to strengthen its in-house capabilities.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Apple didn't make the cut. Grab the names FREE today.

So, Apple saved billions by avoiding a data-center construction spree, but if its existing chips cannot efficiently support next-generation AI models, the company still has to spend somewhere. Rather than building thousands of AI servers, it may instead acquire the technology and engineering talent needed to close the performance gap.

Ironically, Apple may simply be replacing capital expenditures with mergers and acquisitions. Yet investors shouldn’t assume Apple’s acquisition strategy will become as expensive as the infrastructure race underway at Amazon, Microsoft, Alphabet, and Meta. Buying specialized semiconductor startups is unlikely to approach the hundreds of billions those companies are investing in AI data centers, networking equipment, and custom silicon.

Still, the reports highlight an important reality: there is no inexpensive shortcut to competing in modern AI.

Key Takeaway In short, Apple’s conservative AI strategy has protected its financial position while competitors are committing to spending hundreds of billions of dollars annually. That discipline deserves credit. 

Yet reports that Apple’s M2 Ultra chips have struggled with today’s most advanced AI workloads — and that the company is now pursuing AI chip acquisitions — suggest the cost of remaining competitive may simply shift from capital expenditures to M&A. For long-term investors, that’s still a preferable position to funding an open-ended infrastructure arms race. But it also confirms that even Apple cannot escape the enormous investment required to compete in artificial intelligence.

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I keep hitting the buy button on Apple (NASDAQ:AAPL | AAPL Price Prediction) because the company treats shareholders like partners, and the receipts stack up quarter after quarter.

The pull is simple. Apple monetizes a sticky global footprint and routes almost every dollar of the resulting cash back to owners. In fiscal 2025, the company generated $111.5B in operating cash flow and returned $106.1B to shareholders through buybacks and dividends. That is a promise being kept in real dollars, every ninety days.

The Cash Return Case Three numbers keep me adding. The board authorized a fresh $100 billion buyback program alongside a 4% dividend increase to $0.27 per quarter. FY25 buybacks alone hit $90.7B, on top of a $15.4B dividend payout, and Q1 FY26 operating cash flow ran $53.9B. Q2 FY26 revenue reached $111.18 billion, up 16.6% year over year, with diluted EPS of $2.01, an eighth consecutive quarter beating expectations. Add in the $24.7B repurchased in Q1 FY26 alone and the buyback pace is accelerating.

The Services engine is why the cash keeps compounding. While bears constantly fret over incremental iPhone upgrade metrics, Apple has quietly shifted its core profit engine and turned an installed base of over 2.5 billion active devices into a high-margin subscription business through the App Store, iCloud, Apple Music, and Apple TV+. Services hit an all-time record of $30.98 billion in Q2 FY26. Recurring revenue at that scale is why Apple posts a 46.9% gross margin, a 32.0% operating margin, and a 171.4% return on equity. iPhone still delivered a March-quarter record $56.99 billion, Greater China reached $20.50 billion, and double-digit growth appeared across every geographic segment.

Why Apple, Not the Obvious Alternatives I own other mega-cap tech, but Apple is where I keep adding. Amazon (NASDAQ:AMZN) and Alphabet (NASDAQ:GOOGL) are locked in a hyper-aggressive, speculative arms race, collectively incinerating hundreds of billions of dollars on data centers and advanced GPU hardware. Apple is playing a different, disciplined game. FY25 capex ran $12.7B against $111.5B of operating cash flow, which lets management push the bulk of the cash back to owners rather than sink it into build-outs whose payoffs are still unproven. Tim Cook framed the quarter this way: “Today Apple is proud to report our best March quarter ever, with revenue of $111.2 billion and double-digit growth across every geographic segment.”

The Risk I Carry Valuation is the argument I have to answer. Shares trade at a P/E of 43, a P/B of 65, and a P/FCF of 49. The dividend yield sits at just 0.32%, and Greater China exposure plus reliance on third-party manufacturing are real risks I carry. My response: earnings growth is doing the compounding work. Net income rose 19.36% in Q2 FY26 to $29.58 billion, and Q1 FY26 net income of $42.10 billion was up 15.87%. When a business converts earnings to cash near dollar-for-dollar and shrinks its share count every quarter, a rich multiple gets absorbed by the compounding.

Forward Conviction The buy button stays active because Apple keeps doing the boring, powerful thing: printing cash, returning it to owners, and letting a 2.5-billion-device installed base compound on top. The stock is up 129.49% over five years and 1,356.46% over ten, which is what happens when a cash machine is allowed to run undisturbed. That is the discipline I want anchoring a retirement account, and it is why my next paycheck goes to the same ticker.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Apple didn't make the cut. Grab the names FREE today.

Contact [email protected] for any questions or corrections.

Apple and the US Justice Department are in early discussions about settling a 2024 lawsuit that alleges the iPhone maker violated antitrust laws. Mark Gurman reports on "Balance of Power.

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Apple filed a trade secrets lawsuit against OpenAI last Friday, and it’s not messing around. The complaint alleges a pattern of misconduct reaching all the way up to OpenAI’s chief hardware officer and claims more than 400 former Apple employees now work at the company. OpenAI’s response so far has been carefully hedged, and the timing couldn’t be worse with the company reportedly eyeing an IPO as early as later this year. 

On this episode of TechCrunch’s Equity podcast, hosts Kirsten Korosec, Anthony Ha, and Sean O’Kane dig into what the lawsuit could mean for OpenAI’s own hardware ambitions and IPO timeline, plus a bigger theme running through the week’s news: how much should anyone trust AI companies with their data? 

Subscribe to Equity on YouTube, Apple Podcasts, Overcast, Spotify and all the casts. You also can follow Equity on X and Threads, at @EquityPod. 

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Theresa Loconsolo is an audio producer at TechCrunch focusing on Equity, the network’s flagship podcast. Before joining TechCrunch in 2022, she was one of 2 producers at a four-station conglomerate where she wrote, recorded, voiced and edited content, and engineered live performances and interviews from guests like lovelytheband. Theresa is based in New Jersey and holds a bachelors degree in Communication from Monmouth University.

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Apple AAPL reclaimed its position as the world's most valuable publicly traded company on Friday after its market capitalization surpassed Nvidia's.

Apple shares climbed to an all-time high of $334.99, lifting the company's market value to approximately $4.88 trillion.

Nvidia shares fell more than 3% in early trading, reducing the AI chipmaker's market capitalization to about $4.84 trillion.

Nvidia had held the title of the world's most valuable company since June 2025, when it overtook Microsoft.

The chipmaker also became the first company to reach a $5 trillion market capitalization in October.

The two technology companies have taken different paths this year.

Apple shares have gained 22% in 2026, outperforming the broader market as investors responded positively to the company's artificial intelligence strategy and relatively modest capital spending model.

Nvidia, by comparison, has risen about 7% this year. The company's shares have lagged as investor attention shifted toward memory chips and data center infrastructure, benefiting companies such as Micron Technology and Sandisk.

Apple's return to the top of the market value rankings comes after the company was widely viewed as trailing many of its technology peers in the race to develop advanced artificial intelligence capabilities.

The milestone also arrives as Chief Executive Tim Cook prepares to hand leadership of the company to hardware executive John Ternus in September.

Last month, Apple introduced a long-delayed overhaul of Siri, positioning the upgraded digital assistant as a key component of its effort to narrow the gap with larger technology rivals and emerging AI-focused companies.

Some analysts believe Apple's installed base of iPhone users and the personal data stored on those devices could become a significant competitive advantage for its artificial intelligence strategy by enabling Siri to deliver more personalized and capable responses.

However, they also note that much of that data remains protected within Apple's operating systems because of the company's privacy policies, requiring Apple to find ways to leverage the information while maintaining those protections.

HSBC upgraded Apple to Buy from Hold on Friday and raised its price target to $366 from $260, implying approximately 10% upside from Thursday's closing price.

Analyst Nicolas Cote-Colisson said in a note to clients, "We believe that the launch of AI features and a strong product pipeline have the potential to drive a major upgrade cycle."

According to HSBC, Apple can continue benefiting from artificial intelligence through the upcoming expansion of Apple Intelligence, its AI platform for iPhone, iPad, and Mac users.

"Apple is now at an operational turning point: not only can the company stay away from the (too) high capex debate (it only invests 2.5% of its [estimated 2026] sales vs 39% for hyperscalers)…it is also well placed to leverage its 2.5 [billion] installed device base with its forthcoming revamped Apple Intelligence," Cote-Colisson wrote.

He added that the new agentic Siri AI is expected to launch later this year and could increase demand for Apple devices.

"This AI boost comes at the right moment, when we think Apple has one of its most innovative product pipelines in place," Cote-Colisson wrote.

The analyst also said Apple is expected to introduce its long-awaited foldable iPhone Ultra, alongside the iPhone 18 Pro and iPhone 18 Pro Max, later this year, developments that HSBC believes could further support demand for the company's products and its shares.

Apple Inc. is again the biggest company in the world after wresting the title from Nvidia Corp. Sarah Hunt of Alpine Saxon Woods says talks about the growth of Apple and the AI trade on "Bloomberg Open Interest." -------- More on Bloomberg Television and Markets Like this video?

The company is letting its Big Tech peers pony up for research and development and then is ready to swoop in to grab the best models when the dust settles.

Ah, so that's why we didn't hear about ChatGPT at WWDC this year.

Bridget Carey is an award-winning reporter who helps you level-up your life -- while having a good time geeking out. Her exclusive CNET videos get you behind the scenes as she covers new trends, experiences and quirky gadgets. Her weekly video show, "One More Thing," explores what's new in the world of Apple and what's to come. She started as a reporter at The Miami Herald with syndicated newspaper columns for product reviews and social media advice. Now she's a mom who also stays on top of toy industry trends and robots. (Kids love robots.)

Expertise Consumer technology | Apple | Google | Samsung | Microsoft | Amazon | Meta | Social media | Mobile | Robots | Future tech | Immersive technology | Toys | Culture Credentials

Bridget has spent over 18 years as a consumer tech reporter, hosting daily tech news shows and writing syndicated newspaper columns. She's often a guest on national radio and television stations, including ABC, CBS, CNBC and NBC. Apple's lawsuit against OpenAI is full of astonishing accusations and details, with Apple alleging it uncovered a pattern of theft of Apple's trade secrets. Apple's complaint mostly points the finger at a few ex-Apple employees that now work at OpenAI, the maker of ChatGPT.

OpenAI has faced quite a number of lawsuits lately on how it does business, but Apple's suit brings a different twist. If this case goes to trial, it could reveal the secret hardware that OpenAI has long teased. A trial could seek damages if Apple's work is being used to help develop some sort of rival AI device. Would a lawsuit spill the beans on a device -- or several devices -- before OpenAI is ready to launch?

Watch this: Apple vs. OpenAI: These Lawsuit Details Are Wild

05:58

This week's episode of One More Thing, embedded above, goes into the juicy details of the suit and what happens next. OpenAI CEO Sam Altman says he's not afraid of Apple, but maybe he should be. Taking rivals to court is part of the Apple playbook, and the company knows how to do it well. 

The fight could also drag in a few famous Apple faces. Apple's former design chief, Jony Ive, is now working on making AI gadgets for OpenAI. That means Apple lawyers might call to the stand the former designer of the iPhone, to see if he used information stolen from Apple. (Awkwaaard.)

For more One More Thing, subscribe to our YouTube page to catch Bridget Carey breaking down the latest Apple news and issues every Friday.

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Bridget Carey is an award-winning reporter who helps you level-up your life -- while having a good time geeking out. Her exclusive CNET videos get you behind the scenes as she covers new trends, experiences and quirky gadgets. Her weekly video show, "One More Thing," explores what's new in the world of Apple and what's to come. She started as a reporter at The Miami Herald with syndicated newspaper columns for product reviews and social media advice. Now she's a mom who also stays on top of toy industry trends and robots. (Kids love robots.) See full bio

As Apple Inc. (NASDAQ: AAPL) stock surged to a new all-time high on July 17, Nicolas Cote Colisson, a Wall Street analyst from HSBC Holdings  PLC ADR (NYSE: HSBC), has signaled further upside over the next 12 months.

Cote upgraded AAPL stock to a Buy rating in a note to clients on July 16. He also lifted the firm’s 12-month price target for AAPL stock to $366 from $260, thereby signaling a potential 9.82% upside.

The analyst now sees the company entering a phase where operational momentum and product innovation converge. Cote pointed to Apple’s relatively light capital spending, about 2.5% of projected 2026 sales, compared to hyperscalers pouring 39% of sales into infrastructure.

The analyst argued Apple’s edge lies in monetizing its massive 2.5 billion-device installed base through an upgraded Apple Intelligence rollout. Furthermore, the analyst noted that the company’s upcoming standout releases, including iPhone 18 Pro, iPhone Pro Max, and an iPhone Air slated for April 2027, could boost AAPL stock price.

Most importantly, the analyst noted that AAPL stock could be bolstered by the upcoming book-style foldable iPhone.

“AI boost comes at the right moment, when we think Apple has one of its most innovative product pipelines in place,” Cote noted.

Is AAPL a good stock to buy in 2026? As HSBC’s Cote signaled further upside, Edison Lee, a Wall Street analyst from Jefferies, reiterated a Hold rating. Lee set the firm’s 12-month price target for Apple stock at $299.88, thus suggesting a possible 10.02% downside.

At press time, 30 Wall Street analysts surveyed by TipRanks had set an average 12-month price target of about $328.69, representing a potential 1.37% downside. Nonetheless, these analysts have issued a Moderate Buy rating for AAPL stock.

AAPL stock forecast. Source: TipRanks. The Moderate Buy rating from Wall Street analysts comes amid supportive Apple Intelligence news. For instance, China’s Cyberspace Administration cleared Apple Intelligence for launch.

Meanwhile, Apple CEO Tim Cook recently said that price hikes for Apple products are unavoidable due to these rising memory chip costs. Moreover, rising demand for high-bandwidth memory (HBM) is benefiting suppliers such as Micron Technology, Inc. (Nasdaq: MU), while major buyers of memory chips face higher costs.

Year-to-date (YTD) AAPL stock has surged over 22%, trading at about $333.26 at press time.

Apple stock YTD chart. Source: Finbold As such, if the high-bandwidth memory stocks keep rising over the next 12 months, Cote’s target for Apple could be achieved and vice versa.

​

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Apple surpassed Nvidia in market value on Friday to reclaim its spot as the world's most valuable company.

Shares of Nvidia dropped more than 3% and its market value dipped to $4.84 trillion in early morning trading. Apple last traded at a $4.88 trillion market value.

The two companies have had very different fortunes in 2026, with the iPhone maker surging 22% this year, while Nvidia has gained about 7%.

The leading AI chipmaker, which has rallied since the launch of ChatGPT, has largely sat on sidelines in 2026, as Wall Street pivots to the memory chip and infrastructure stage of the datacenter buildout. That's benefitted chipmaking stocks such as Micron Technology and Sandisk.

Read more CNBC tech newsElon Musk's Memphis AI empire is the epicenter of the data center backlashChinese startup Moonshot AI unveils Kimi model it says rivals OpenAI, AnthropicSpaceX stock falls after Starship test flight abortedMicrosoft's Nadella criticizes Anthropic's Fable for being 'editorially controlled'This is breaking news. Please refresh for updates.

In the latest trading session, Apple (AAPL - Free Report) closed at $333.26, marking a +1.76% move from the previous day. This change outpaced the S&P 500's 0.51% loss on the day. Meanwhile, the Dow experienced a drop of 0.2%, and the technology-dominated Nasdaq saw a decrease of 1.47%.

Prior to today's trading, shares of the maker of iPhones, iPads and other products had gained 10.66% outpaced the Computer and Technology sector's loss of 2.99% and the S&P 500's gain of 0.53%.

Investors will be eagerly watching for the performance of Apple in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on July 30, 2026. The company is forecasted to report an EPS of $1.88, showcasing a 19.75% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $108.79 billion, up 15.69% from the year-ago period.

AAPL's full-year Zacks Consensus Estimates are calling for earnings of $8.76 per share and revenue of $479.03 billion. These results would represent year-over-year changes of +17.43% and +15.11%, respectively.

Investors might also notice recent changes to analyst estimates for Apple. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.05% higher. Apple currently has a Zacks Rank of #3 (Hold).

In terms of valuation, Apple is currently trading at a Forward P/E ratio of 37.39. This indicates a premium in contrast to its industry's Forward P/E of 21.98.

Meanwhile, AAPL's PEG ratio is currently 2.84. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Computer - Micro Computers industry stood at 2.84 at the close of the market yesterday.

The Computer - Micro Computers industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 18, this industry ranks in the top 8% of all industries, numbering over 250.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

Shares are headed to another record high on Thrusday. Maybe the iPhone maker should thank John D.

Apple (AAPL +4.01%) is about 4% away from a $5 trillion market cap. If the stock climbs from Wednesday's record close of $327.50 to about $340, the iPhone maker will become the second company in history, after Nvidia, to reach the mark. My prediction is that it happens before the end of 2026.

The math is simple. Reaching $5 trillion means adding roughly $190 billion in value, which works out to a share price around $340 -- a climb of about 4% from here.

Image source: Apple.

Apple has momentum working in its favor. Shares jumped 4% on Wednesday to a fresh all-time high, and the stock has now risen more than 60% from its 52-week low of $201.50.

The business is backing the move. Apple's revenue for its fiscal second quarter, the period ended March 28, rose 17% year over year to $111.2 billion, and earnings per share climbed 22%. The company's services business posted an all-time revenue record of $31 billion. Additionally, Apple's board also authorized an additional $100 billion in share repurchases in April, extending buybacks that steadily support demand for the stock.

There's another potential catalyst on the calendar, too. Apple typically reports its June-quarter results in late July, and another quarter of double-digit growth could give the stock the push that carries it the final 4%.

Today's Change

(

4.01

%) $

12.64

Current Price

$

327.50

Of course, the milestone isn't a given. Apple trades at about 38 times earnings -- a steep multiple that arguably leaves the stock vulnerable if growth disappoints. A 4% gain is small, but it isn't guaranteed.

Even so, the setup favors the milestone. Nvidia showed it can be done when it became the first company valued at $5 trillion last October, and Apple is now the world's second-most-valuable company, ahead of third-place Alphabet. With revenue growth accelerating, a record services business, and $100 billion in fresh buyback firepower, a 4% move looks like a low bar.

In short, I don't just think Apple will join the $5 trillion club; I think there's a good chance it will do so this year.

Daniel Sparks and his clients have positions in Apple. The Motley Fool has positions in and recommends Alphabet, Apple, and Nvidia. The Motley Fool has a disclosure policy.

By

Kara Greenberg

Kara Greenberg is a senior news editor for Investopedia, where she does work writing, editing, and assigning daily markets and investing news. Prior to joining Investopedia, Kara was a researcher and editor at The Wire. Earlier in her career, she worked in financial compliance and due diligence at Loomis, Sayles & Company, and The Bank of New York Mellon.

Published July 15, 2026

04:48 PM EDT

Apple shares have added about a fifth of their value in 2026. Cheng Xin / Getty Images

Key Takeaways Apple shares climbed to a fresh record Wednesday in the wake of reports the iPhone maker is considering buying an AI chip company.The stock has been on a roll lately amid hopes new releases and AI updates later this year could drive more gains. Get personalized, AI-powered answers built on 27+ years of trusted expertise.

The possibility that Apple could add an AI chip company to its portfolio sent its stock to fresh highs.

Shares of Apple (AAPL) climbed 4% Wednesday, closing above $327 to top a record set earlier this week. The Information reported Wednesday that the iPhone maker is on the hunt to buy a chip company that can help it realize its AI ambitions.12 The stock was one of the top performers in the S&P 500 as stocks rose broadly.

Apple has approached several chip startups about a buyout after facing challenges with its in-house ⁠AI servers, according to the report. Apple did not respond to Investopedia’s request for comment in time for publication.

Why This Matters to Investors Apple faces intense pressure to prove it’s making progress with AI, and a new chip deal could help boost confidence in its trajectory.

The iPhone maker’s stock has been on a roll lately. It has hit a series of record highs in recent weeks amid growing optimism about upcoming releases and ahead of the September rise of CEO John Ternus into the seat long held by Tim Cook.

In a note to clients yesterday, Morgan Stanley analysts pointed to hopes that recent price hikes and loyalty to Apple’s brand could help defend the company’s margins from the impact of rising memory prices amid an industrywide shortage of parts.3

Apple shares have added about a fifth of their value since the year began, making it the best-performing member of the Magnificent 7 in 2026 so far.

For more reporting from Investopedia on today’s market moves, click here.

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Shares of Apple (NASDAQ:AAPL | AAPL Price Prediction) are up 4% Wednesday afternoon to a fresh record of $327, extending a rally that now has Apple stock up 20% year to date (YTD). The move puts Apple on pace for its 15th intraday record of 2026 and lifts the company’s market value to nearly $5 trillion.

Apple has added more than half a trillion dollars in market value this month alone, leading the Dow Jones into mid-July. The move sits on top of a trailing-12-month P/E ratio of 39.67x, a premium multiple that raises the bar for the next leg higher. With shares now flirting with $330, the natural question for Apple investors is what it would actually take to punch through $350.

Catalyst: Citi Lifts AAPL’s Price Target to $365 The immediate spark is a fresh Wall Street endorsement. Citi analyst Asiya Merchant raised her AAPL price target to $365 from $315 on July 13, maintaining a Buy. Her thesis leans on record smartphone share of 25%, continued PC share gains, and pricing power evidenced by management’s gross margin guide of 48% to 49% despite the memory-chip shortage squeezing rivals that buy on the spot market.

Services stickiness is the other pillar. Apple posted an all-time Services revenue record of $30.98 billion in Q2 FY2026, alongside iPhone revenue of $56.99 billion and revenue growth of 17% year over year (YoY). A smarter Siri, framed as the tool that keeps users inside the ecosystem, is Citi’s perceived mechanism for compounding that recurring revenue.

What Would It Take for AAPL to Hit $350? From here, $350 is another meaningful leg higher, and the model math tells a nuanced story. Our internal framework pegs a base-case one-year target of $359 with a BUY rating and 10% upside, with a bull case of $411 and a bear case of $305. Citi is at $365, and JPMorgan sits at $345.

The tension is that Wall Street’s average target is only $317, which is already below where Apple stock trades. Apple has effectively run past the consensus estimate, so a move to $350 requires the bullish drivers to keep delivering: iPhone 17 momentum, Services growth in the mid-teens, and margin expansion despite input-cost headwinds. The prediction markets echo the caution, with only a 0.395 probability of AAPL hitting $344 during July.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Apple didn't make the cut. Grab the names FREE today.

The bear case is worth noting for AAPL stock. It rests on the premium 39.67x valuation, that below-market consensus target, memory-cost pressure that could compress product gross margin, softer smartphone and PC end markets, and Apple’s recently filed lawsuit against OpenAI over alleged trade-secret theft. Investors weighing their position sizes should treat $350 as achievable but not automatic.

Peers and the Broader Rally Apple stock isn’t moving alone atop the Dow. Goldman Sachs (NYSE:GS) and Chevron (NYSE:CVX) are the index’s other July leaders for very different reasons. Goldman Sachs stock is up 30% YTD after posting record Q2 2026 diluted EPS of $20.98, and Chevron stock is up 19% YTD on the crude oil recovery.

Mega-cap tech is broadly participating, including NVIDIA (NASDAQ:NVDA), with NVIDIA stock up 13% YTD on sustained AI-infrastructure demand. For diversified exposure with Apple as a top holding, the NASDAQ 100 tracking Invesco QQQ Trust (NASDAQ:QQQ) captures the mega-cap-tech theme, though the ETF remains concentrated in a handful of names, which cuts both ways when leadership narrows.

What to Watch The next real test comes fast. Apple reports its Q3 FY2026 earnings on July 30, with the consensus estimate calling for EPS of $1.88, up 20% YoY. Citi frames the iPhone 18 launch in September as the key sentiment inflection for the second half, and Polymarket assigns a 97% probability that the launch happens this year.

Investors can watch for whether Apple’s gross margin guidance holds through the memory-cost squeeze, whether Services stays in the mid-teens growth zone, and whether the pace of the $100 billion buyback authorization keeps supporting the tape. Given the roughly 39x multiple and a consensus target sitting below the stock, investors should consider keeping their AAPL stock position sizes modest and adding on pullbacks rather than chasing record closes. A move to $350 is well within reach if the bullish drivers keep firing, but it’s the July 30 earnings report, not today’s tape, that could decide whether this rally will persist in the long run.

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Apple NASDAQ: AAPL has rallied sharply since late June, keeping the stock near record territory as investors look ahead to the company’s Q3 2026 earnings report, expected on June 30. At first glance, the setup heading into that report appears relatively straightforward.

Apple Today

$327.19 +12.33 (+3.92%)

As of 02:51 PM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$201.50▼

$328.53Dividend Yield0.33%

P/E Ratio39.59

Price Target$314.26

Analysts have been busy raising price targets, the stock has been hitting highs, and the market appears to be leaning into the thesis that Apple's ecosystem and pricing power will deliver the goods as its AI strategy ramps up.

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However, not everyone is convinced that this bet is safe. A growing number of voices are questioning whether Wall Street has gotten ahead of itself, pricing in an AI-driven future that Apple hasn't demonstrated it can deliver, while ignoring a set of very real, near-term cost pressures.

That gap between the optimism priced into the stock and the caution running through some of the underlying analysis is becoming harder to ignore, and this month's earnings report threatens to widen it further.

The "Toll Booth" Thesis Has a Hole in ItMuch of the bull case for Apple's AI positioning rests on what's often called the "toll booth" thesis: the idea that Apple doesn't need to build the best AI model because it owns the device and platform through which people will access AI, and can therefore extract value regardless of which model wins. It is a compelling argument, and one we have recently covered through the lens of Apple’s agentic AI opportunity.

The trouble is that the evidence for it actually working in practice is thin. Rather than monetizing AI usage directly, Apple is currently paying other companies for the AI models running inside its own ecosystem. That sounds more like a cost center than a toll booth.

Until that dynamic flips, and until Apple demonstrates it can turn its AI features into meaningful revenue, the thesis remains more theoretical than proven. Investors betting on it are, for now, betting on potential rather than results.

The Cost Pressures Are Not TheoreticalWhile the AI upside remains speculative, the cost side of Apple's story is anything but. Surging NAND and DRAM prices have already forced the company to raise prices across its Mac and iPad lineups, and speculation continues to build that iPhone pricing will follow suit later this year.

The KeyBanc team made this exact point earlier this week, as they downgraded Apple to Underweight—a rare, but worrying, outright bearish stance. The firm's analysts pointed to iPad price increases of $100 to $200 and MacBook increases of up to $300, arguing that products at this level tend to see demand fall by more than the size of the price increase. Their bigger worry is what happens when that same dynamic hits the iPhone. To give a sense of what that could look like, KeyBanc is expecting iPhone revenue growth to slow sharply in fiscal 2027, coming in well below the broader consensus.

Adding to the pressure, KeyBanc also flagged that U.S. carriers may pull back on device subsidies as costs rise, which would likely extend how long customers hold onto their phones before upgrading and could complicate Apple's growth story both domestically and internationally.

The Valuation Leaves Little Room for ErrorOverall MarketRank™86th Percentile

Analyst RatingModerate Buy

Upside/Downside3.8% Downside

Short Interest LevelHealthy

Dividend StrengthStrong

News Sentiment0.57 Insider TradingSelling Shares

Proj. Earnings Growth9.50%

See Full Analysis

Then there's the valuation itself. Apple currently trades at around 36 times forward earnings, which is one of the highest multiples among its mega-cap technology peers. That feels like a lot to pay for a company that doesn't yet have a clear AI-driven catalyst for either growth or margin expansion.

Add in a China business facing both slowing sales and margin pressures, and the risk-reward balance starts to look increasingly skewed to the downside.

Now, none of this means Apple's underlying business is broken. Its ecosystem stickiness remains one of the most powerful competitive moats in all of technology. That stickiness is arguably now doing more heavy lifting than the hardware itself as competition intensifies.

But stickiness alone may not be enough to continue justifying a premium multiple if Apple doesn’t convince investors in its upcoming earnings report that its AI initiatives are gaining momentum.

How to Think About the Upcoming ReportWith those earnings now just over two weeks away, the report is shaping up as a genuine test of which side of this argument is right. If Apple can show clear signs that its AI features are translating into stronger Services growth, resilient iPhone demand, or improving margins despite cost pressures, the bulls will have concrete evidence to point to.

However, if the report instead confirms the slowing growth and margin compression that skeptics like KeyBanc are forecasting, the stock's recent run toward all-time highs could look increasingly hard to justify.

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Apple has quietly published a rulebook for its new Maps ads, revealing a more curated approach than advertising giant Google.

The iPhone maker has not disclosed a launch date for Maps ads, which was announced earlier this year, beyond saying they would arrive “this summer” in the U.S. and Canada. However, the company has published advertiser documentation and Maps-specific ad policies, suggesting the rollout is approaching.  

In a newly published Apple Advertising Services policy, effective as of July 14, 2026, the iPhone maker shares its rules for advertising on Apple Maps. Notably, it prohibits the broad category of home services businesses, like plumbing, electrical, locksmith, HVAC, pest control, roofing, and general contracting services, among others.

That sets Apple apart from Google, where Local Services Ads are one of the company’s largest local advertising categories. Apple’s policy suggests the company is initially limiting its ads to places with a physical presence that their customers actually visit.

Apple did not respond to a request for comment about the new rulebook.

Image Credits:Apple This approach could help make Apple’s ads feel more like organic map listings, rather than traditional paid search ads.

It could also save Apple some headaches as it gets its Apple Maps ads off the ground. Home services businesses, including locksmiths and garage door service providers, often require additional verification. Google, for instance, allows these categories, but requires initial verifications, follow-ups, and audits to remain in good standing.

Apple’s curated approach to its App Store is also spilling over into its newest advertising vertical. In addition to banning home services, the policy prohibits a handful of businesses from advertising on Maps, like cryptocurrency ATMs and bail bonds providers.

Apple is also taking a hands-on approach to approving ads for businesses offering medical services, as the policy notes these ads will be “evaluated on a case-by-case basis.”

These restrictions appear in a dedicated section of the new “Apple Advertising Services
News and Stocks, Maps, and Sports Programming Policies,” which details the rules around publishing ads across Apple’s first-party apps beyond the App Store.

The broader policy also prohibits deceptive or profane ads, political ads, and ads featuring weapons, violence, controlled substances, defamatory material, and more.

Although Apple may expand to other ad categories over time, its initial approach positions Maps and its ads as a more curated, navigation-focused product, rather than an extension of a web search engine.

Apple’s approach to displaying ads will also differ from Google; Apple said it would only show a single ad to users in its Maps search results. It noted that the advertised businesses would be clearly marked with a small blue halo around the pin, and labeled as an ad in the list of Suggested Places.

Apple also said that data about the ads that users interact with stays on the device and is not collected by the company or shared with third parties.

Another recent update to Apple’s Advertising Services Terms of Service also suggests that Apple could be planning to expand its Apple Apps to non-Apple-owned services, a report from Mobile Dev Memo noted. Apple has not confirmed any changes on that front, however.

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Sarah has worked as a reporter for TechCrunch since August 2011. She joined the company after having previously spent over three years at ReadWriteWeb. Prior to her work as a reporter, Sarah worked in I.T. across a number of industries, including banking, retail and software.

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View of an Apple logo at an Apple store in Paris, France, April 23, 2025. REUTERS/Abdul Saboor/File Photo Purchase Licensing Rights, opens new tab

July 15 (Reuters) - Apple (AAPL.O), opens new tab is looking to buy chip companies to bolster its efforts to make server processors for running AI, ​The Information reported on Wednesday, citing people familiar with ‌the matter.

Here are some details:

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The iPhone maker has approached chip startups to gauge their interest in a buyout and has spoken with bankers ​about possible deals, the report said.

Apple's interest comes as ​it faces challenges with the performance of its in-house ⁠AI servers, which currently run on internally designed M2 ​Ultra chips, according to The Information.

It had originally planned to ship ​a future version of its AI server chip, known internally as "Baltra", this year, but the project has been pushed back, people familiar with the ​matter told The Information.

Apple did not immediately respond to ​a request for comment. Reuters could not independently verify the report.

Earlier this year, ‌Apple ⁠tried running Google's (GOOGL.O), opens new tab Gemini models on its internal servers as part of a Siri overhaul, but the Mac-based chips could not handle the large model, forcing the company to run ​parts of the ​revamped assistant ⁠on Nvidia (NVDA.O), opens new tab chips in Google's cloud infrastructure, the report said.

Apple has historically avoided large acquisitions, last ​making a deal in January for Q.ai, an ​Israeli company ⁠working on AI technology for audio.

The company had $45.57 billion in cash and cash equivalents as of March 28, the end of ⁠its ​second quarter.

Last week, Apple said it ​plans to spend over $30 billion under a multi-year chip supply deal with Broadcom (AVGO.O), opens new tab, bolstering its ​domestic sourcing.

Reporting by Anhata Rooprai in Bengaluru; Editing by Sriraj Kalluvila

Our Standards: The Thomson Reuters Trust Principles., opens new tab

Wall Street watches a company's quarterly report closely to understand as much as possible about its recent performance and what to expect going forward. Of course, one figure often stands out among the rest: earnings.

Life and the stock market are both about expectations, and rising above what is expected is often rewarded, while falling short can come with negative consequences. Investors might want to try to capture stronger returns by finding positive earnings surprises.

Now that we know how important earnings and earnings surprises are, it's time to show investors how to take advantage of these events to boost their returns by utilizing the Zacks Earnings ESP filter.

The Zacks Earnings ESP, ExplainedThe Zacks Earnings ESP, or Expected Surprise Prediction, aims to find earnings surprises by focusing on the most recent analyst revisions. The basic premise is that if an analyst reevaluates their earnings estimate ahead of an earnings release, it means they likely have new information that could possibly be more accurate.

Now that we understand the basic idea, let's look at how the Expected Surprise Prediction works. The ESP is calculated by comparing the Most Accurate Estimate to the Zacks Consensus Estimate, with the percentage difference between the two giving us the Zacks ESP figure.

In fact, when we combined a Zacks Rank #3 (Hold) or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time. Perhaps most importantly, using these parameters has helped produce 28.3% annual returns on average, according to our 10 year backtest.

Stocks with a #3 (Hold) ranking, which is most stocks covered at 60%, are expected to perform in-line with the broader market. But stocks that fall into the #2 (Buy) and #1 (Strong Buy) ranking, or the top 15% and top 5% of stocks, respectively, should outperform the market. Strong Buy stocks should outperform more than any other rank.

Should You Consider Texas Instruments?The last thing we will do today, now that we have a grasp on the ESP and how powerful of a tool it can be, is to quickly look at a qualifying stock. Texas Instruments (TXN - Free Report) holds a #3 (Hold) at the moment and its Most Accurate Estimate comes in at $1.96 a share seven days away from its upcoming earnings release on July 22, 2026.

TXN has an Earnings ESP figure of +2.66%, which, as explained above, is calculated by taking the percentage difference between the $1.96 Most Accurate Estimate and the Zacks Consensus Estimate of $1.91. Texas Instruments is one of a large database of stocks with positive ESPs. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

TXN is just one of a large group of Computer and Technology stocks with a positive ESP figure. Apple (AAPL - Free Report) is another qualifying stock you may want to consider.

Slated to report earnings on July 30, 2026, Apple holds a #3 (Hold) ranking on the Zacks Rank, and its Most Accurate Estimate is $1.89 a share 15 days from its next quarterly update.

Apple's Earnings ESP figure currently stands at +0.53% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $1.88.

TXN and AAPL's positive ESP figures tell us that both stocks have a good chance at beating analyst expectations in their next earnings report.

Find Stocks to Buy or Sell Before They're ReportedUse the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >>

A lawyer says Apple's case against OpenAI is really a fight to see what's behind the curtain By You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.

OpenAI CEO Sam Altman looks past Apple CEO Tim Cook. Bloomberg/Getty Images Apple doesn't know what's happening behind OpenAI's closed doors, and its new lawsuit could change that.

Apple sued OpenAI in federal court on Friday, with a fiery complaint accusing the company of stealing trade secrets to build up its nascent hardware business. The suit pits an incumbent against a disruptor — OpenAI is working on devices that could threaten Apple's bottom line. Apple says OpenAI stole information in a "coordinated pattern of misconduct" and poached more than 400 employees from its ranks.

Patricia Lantzy, an attorney who leads Outside General Counsel's employment practice, told Business Insider that Apple likely brought this complaint in part because it had no other way to determine what information OpenAI might have taken. The complaint makes it clear there's a lot that Apple does not know about what OpenAI might have taken or what it might be doing with any potential trade secrets, she said.

"We have no interest in other companies' trade secrets," an OpenAI spokesperson said in a statement. "While we take these allegations seriously, we're not aware of any evidence that this complaint has merit. We believe in fair competition and allowing people the freedom to work wherever they choose, and we're focused on building innovative technology that empowers people everywhere."

Apple did not respond to a request for comment from Business Insider.

Lantzy laid out the case's most important questions for Apple and OpenAI to answer.

Apple wants more informationApple alleges that its former engineer, Chang Liu, used his old company laptop to access Apple systems during his new job at OpenAI, downloading confidential files containing technical specifications, manufacturing processes, and more. Apple is also accusing OpenAI of pumping potential recruits for confidential information about the iPhone giant's work.

Apple's suit calls these allegations the "tip of the iceberg," saying it "lacks visibility into what's been happening behind closed doors at OpenAI."

Lantzy said a lawsuit's discovery process can help Apple find out exactly what's happening. It's an alternative to something drastic and illegal like corporate espionage, she said.

Apple's point of view seems to be, "We need the court's help to hash out these facts and discover exactly what has gone on here," she said.

Apple's legal argument hinges on a 2016 lawThe thrust of the lawsuit hinges on the 2016 Defend Trade Secrets Act, which allows companies to sue for trade secret theft.

Apple will need to prove that any information in question was actually secret, that Apple took precautions to safeguard it, and that the defendants intentionally obtained it through improper means, Lantzy said.

Another important question, she said, is whether OpenAI actually used any stolen trade secrets in practice. That could have major ramifications in the case, where Apple has asked for monetary recovery and damages, or in lieu of those, a "reasonable royalty."

While it has hired hundreds of former Apple workers, OpenAI's hardware efforts are still early. Bloomberg reported on Tuesday that OpenAI's first device could be a screen-free smart speaker.

In the complaint, Apple alleges that OpenAI has deployed stolen secrets in its hardware development.

"That's kind of hard to prove at this stage," Lantzy said.

The attorney said California law generally protects OpenAI's recruitment of Apple employees, though if the company instructed decamping Apple workers to bring secrets with them, that would be "problematic."

"We're only reading Apple's side of it," Lantzy said. "We haven't gotten OpenAI's answer yet. That will also be illuminating, no doubt."

Have a tip? Contact this reporter via email at [email protected], or over text, Signal, Telegram, or WhatsApp at 415-757-8198. Use a personal email address, a nonwork WiFi network, and a nonwork device; here's our guide to sharing information securely.

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Stephen Council You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.

Stephen is a Senior Tech Reporter at Business Insider, covering OpenAI, Anthropic and the ecosystem around the leading artificial intelligence companies.Previously he covered technology at SFGATE, and has written for The Wall Street Journal, The Information and CNBC. He studied journalism and economics at Northwestern University.His work has earned an SF Press Club Investigative Reporting Award and, in 2025, SPJ NorCal’s Excellence in Journalism Award for Technology Reporting.Stephen lives in San Francisco. Contact him via email at [email protected], or on Signal, Telegram, or WhatsApp at 415-757-8198. Use a personal email address, a nonwork WiFi network, and a nonwork device; here's our guide to sharing information securely.

Apple OpenAI Sam Altman More Legal lawsuit Big Tech

After Apple's recent runup, one Wall Street expert is saying it's time to step on the brakes.

Apple (AAPL - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.

Over the past month, shares of this maker of iPhones, iPads and other products have returned +7.1%, compared to the Zacks S&P 500 composite's +1.3% change. During this period, the Zacks Computer - Micro Computers industry, which Apple falls in, has gained 8.9%. The key question now is: What could be the stock's future direction?

While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.

Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

Apple is expected to post earnings of $1.88 per share for the current quarter, representing a year-over-year change of +19.8%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.

For the current fiscal year, the consensus earnings estimate of $8.74 points to a change of +17.2% from the prior year. Over the last 30 days, this estimate has remained unchanged.

For the next fiscal year, the consensus earnings estimate of $9.57 indicates a change of +9.5% from what Apple is expected to report a year ago. Over the past month, the estimate has changed +0.2%.

With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Apple.

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.

For Apple, the consensus sales estimate for the current quarter of $108.71 billion indicates a year-over-year change of +15.6%. For the current and next fiscal years, $478.19 billion and $517.77 billion estimates indicate +14.9% and +8.3% changes, respectively.

Last Reported Results and Surprise HistoryApple reported revenues of $111.18 billion in the last reported quarter, representing a year-over-year change of +16.6%. EPS of $2.01 for the same period compares with $1.65 a year ago.

Compared to the Zacks Consensus Estimate of $109.48 billion, the reported revenues represent a surprise of +1.55%. The EPS surprise was +4.69%.

The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.

ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.

Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.

The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Apple is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Apple. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

For the past two years, investors have measured the artificial intelligence race by one metric above all others: spending. Microsoft (NASDAQ:MSFT | MSFT Price Prediction), Meta Platforms (NASDAQ:META), Alphabet (NASDAQ:GOOG), and Amazon (NASDAQ:AMZN) are collectively on pace to spend hundreds of billions of dollars on AI infrastructure this year, betting that bigger data centers and more powerful chips will translate into long-term dominance. 

Apple (NASDAQ:AAPL), by comparison, looked like the odd company out. It avoided the AI spending arms race, rolled out Apple Intelligence at a measured pace, and has yet to deliver the fully capable AI-powered Siri it promised. Yet the market is beginning to rethink that narrative. 

Apple is the best-performing Magnificent Seven stock year to date, suggesting investors are starting to recognize that winning AI may depend less on building the biggest model than on controlling how consumers actually use it.

Apple Is Playing a Different AI Game Unlike the hyperscalers, Apple isn’t spending tens of billions of dollars building frontier AI models. Instead, it is positioning itself as the gateway through which consumers interact with AI every day.

At Apple’s Worldwide Developers Conference, the company introduced App Intents, the framework allowing Siri to perform actions inside apps instead of simply answering questions. Booking a reservation, buying products, scheduling appointments, or completing tasks could eventually happen through a simple voice command rather than manually opening an app.

Ironically, Apple may not need the best AI model if it owns the customer relationship. Rather than competing head-to-head with ChatGPT, Gemini, Claude, or future models, Apple could become an AI traffic controller, routing requests to whichever model is fastest, cheapest, or most capable for a given task while keeping sensitive information processed locally on-device whenever possible. 

That approach also aligns with Apple’s longstanding emphasis on privacy.

While rivals burn billions on AI infrastructure, Apple is quietly positioning itself as the ultimate gatekeeper. It’s a high-stakes bet on owning the front door to every consumer AI interaction. © 24/7 Wall St. The Device Upgrade Opportunity Could Be Historic The larger investment story isn’t today’s AI features. It’s tomorrow’s hardware demand. According to Morgan Stanley, roughly 850 million active iPhones cannot run Apple Intelligence, while approximately 1.3 billion of Apple’s estimated 1.4 billion active iPhones cannot support the upcoming AI-powered Siri. Those numbers dwarf previous upgrade opportunities.

If agentic AI becomes the preferred way consumers interact with technology — asking Siri to complete purchases, manage schedules, and coordinate digital tasks automatically — it creates a compelling reason to upgrade hardware, not simply download another app.

That’s an important distinction because Apple’s business has always been strongest when software innovation drives hardware sales.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Apple didn't make the cut. Grab the names FREE today.

Granted, Apple’s enhanced Siri remains unfinished. The vision has been outlined, but execution still lies ahead. Investors shouldn’t confuse the roadmap with a guaranteed outcome.

Apple Could Become The Toll Booth For Consumer AI Surprisingly, Apple’s greatest AI opportunity may have little to do with selling smartphones. If intelligent agents become the primary interface between consumers and digital services, Apple already owns the hardware ecosystem where those interactions occur across iPhone, iPad, Mac, Apple Watch, and Vision products.

That opens the door to new revenue streams through premium AI subscriptions, transaction fees when AI agents complete purchases, or partnerships with multiple AI providers. Instead of competing against every AI company, Apple could benefit from all of them.

It’s a strategy that resembles the App Store playbook. Apple didn’t invent most mobile apps, but it built the platform that connected developers with consumers.

Agentic AI could become the next version of that ecosystem.

Key Takeaway In short, Apple’s AI strategy has often been criticized because it hasn’t matched rivals dollar for dollar in AI infrastructure spending. Yet investors may have been looking at the wrong scoreboard.

If AI ultimately becomes something consumers use through personal assistants instead of standalone chatbots, Apple already controls the devices where those interactions are most likely to occur. Morgan Stanley’s estimate that 1.3 billion iPhones cannot support the next-generation Siri also hints at what could become the largest hardware refresh cycle in the company’s history.

That said, execution remains the biggest risk. Apple still must deliver the intelligent Siri it has promised. Until it does, the investment case rests on potential rather than proven results.

Ultimately, if Apple succeeds, skipping the AI capital spending race may prove to be one of the smartest investments it never made.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Apple didn't make the cut. Grab the names FREE today.

Contact [email protected] for any questions or corrections.

Walter Piecyk, LightShed co-founder and partner, joins 'Squawk Box' to discuss news of Apple nearing $5T in market value, KeyBanc's downgrade of the stock, the headwinds facing the company, OpenAI lawsuit, and more.