Apple (AAPL) Stock: Why Investors Are Ditching AI Big Spenders for the iPhone Maker

TLDR

• Apple (AAPL) rose 3.2% Tuesday, the biggest gain among Magnificent Seven stocks
• Investors view Apple as a “safe haven” due to its low AI spending compared to rivals
• Apple’s 2025 capex was $12.7 billion vs. Meta’s projected $115–$135 billion in 2026
• Apple announced an AI partnership with Alphabet, using Google’s Gemini for its next Foundation Models
• Wedbush’s Dan Ives holds an outperform rating with a $350 price target, implying ~33% upside

Apple stock climbed 3.2% on Tuesday, leading all Magnificent Seven stocks while most of its peers closed lower.

Apple Inc., AAPL

Microsoft fell 1.1%, Alphabet dropped 1.2%, Tesla slid 1.6%, and Meta dipped 0.1%. Amazon and Nvidia each added 1.2%.

The move reflects a growing split on Wall Street. Investors who once cheered massive AI investment are now demanding to see returns — and Apple’s comparatively modest spending is starting to look attractive.

Microsoft, Alphabet, Amazon, and Meta are expected to collectively spend around $650 billion in capex this year. Meta alone has guided for $115–$135 billion in 2026.

Apple’s 2025 capex was $12.7 billion, with Wall Street expecting only a modest rise to $12.9 billion in 2026.

The Roundhill Magnificent Seven ETF has dropped 11% from its October 29 record close. Apple, by contrast, is up 7.9% over the past 12 months, outperforming Microsoft, Amazon, and Meta.

Leaning on Partnerships for AI

Apple has faced criticism for slow AI progress and delayed feature rollouts. But the company is now betting on partnerships to close the gap.

In January, Apple announced a deal with Alphabet to base its next generation of Foundation Models on Google’s Gemini platform and cloud infrastructure — a move that lets Apple tap cutting-edge AI without the heavy capital outlay its rivals are committing to.

What’s Coming Next

Bloomberg reported that Apple is planning a product launch on March 4, with in-person media showcases expected. A refreshed Mac lineup is anticipated, along with three new AI-powered wearables — AI-enabled AirPods, smart glasses, and a Siri-powered pendant.

Apple also announced new video features for its Podcasts app, including video ads with impression-based fees for ad networks, set to launch later this year.

Wedbush analyst Dan Ives reaffirmed his outperform rating with a $350 price target — roughly 33% above current levels.

One risk to watch: rising memory chip costs tied to AI demand are pressuring margins, and Tim Cook has not ruled out price increases on Apple devices.

Apple closed Tuesday up 3.2%, with a 7.9% gain over the past 12 months.

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