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Apple Inc. has emerged as one of the most reliable trades in the stock market as sentiment towards artificial intelligence (AI) swings wildly. While AI stocks face volatility amid concerns over rising infrastructure spending, the iPhone maker’s shares have continued to climb, making it a preferred choice for investors seeking exposure to Big Tech without taking on the same level of risk. According to a Bloomberg report, Apple’s stock has risen 28% in 2026, making it the biggest contributor to the S&P 500 Index’s 12% climb. It is also the best performer among the Magnificent Seven technology giants this year, marking a sharp reversal from 2025, when its 8% gain placed it near the bottom of the group. The report said that the divergence is largely driven by Apple’s strategy of avoiding the massive AI infrastructure spending undertaken by its mega-cap technology peers. While companies such as Microsoft, Amazon, Alphabet and Meta Platforms are investing heavily in AI infrastructure, Apple is focusing on its core strength of developing consumer products that generate excitement, including its new foldable iPhone Duo. With Wall Street’s view of AI capital expenditure constantly shifting, Apple’s shares have become a way for investors to maintain exposure to Big Tech while avoiding some of the volatility affecting the broader AI trade. According to the Bloomberg report, the divergence has become more pronounced as investors reassess whether the hundreds of billions of dollars being invested in AI infrastructure will generate sufficient returns. Concerns over debt at cloud computing provider CoreWeave recently triggered widespread selling in AI stocks. The semiconductor index, known as the SOX, fell more than 11% last week, marking its worst weekly performance since April 2025, while an index tracking the Magnificent Seven declined 3.1%. Apple, meanwhile, gained 2% after the company described demand for the iPhone Duo as nothing short of extraordinary. Apple’s strong free cash flow and durable earnings growth have helped it stand out as several of its technology peers face pressure from AI infrastructure investments. However, its slower growth and elevated valuation remain key concerns for investors. The stock trades at 36 times estimated earnings over the past 12 months, its highest valuation multiple since January 2008. Meanwhile, revenue growth is expected to slow to 9.7% in fiscal 2027 and 5.5% in fiscal 2028, according to Bloomberg Intelligence data. This could make it difficult for Apple to continue outperforming, particularly if sentiment towards AI stocks and semiconductor companies improves. BTIG’s Krinsky has suggested that a rebound in chip stocks could coincide with a pullback in Apple shares towards their 50-day moving average, which was 4.7% below the stock’s most recent closing price. As McCall noted, renewed enthusiasm for AI could reverse the current trend: stronger risk appetite for AI stocks could mean weaker demand for Apple. Disclaimer: We advise investors to check with certified experts before making any investment decisions. Ksheera Sagar has been working as a Market Research Analyst at LiveMint for the past four years, covering stocks, commodities, and broader financial markets. In this role, he closely tracks daily market movements, corporate earnings, sector trends, and macroeconomic developments. <br><br> He has over a decade of experience in the financial services industry and has previously worked with multiple organisations, including global investment bank J.P. Morgan, bringing strong research experience into the newsroom. <br><br> During his career, he has gained extensive exposure to equity research, market analysis, and financial data interpretation, strengthening his expertise across asset classes and market cycles. <br><br> He is known for his data-driven analysis and crisp, listicle-style market stories that break down complex financial developments across key markets for a wide audience. His strong research skills enable him to write detailed and insightful stories on stocks and sectors, focusing on the underlying factors driving market movements. <br><br> His work combines quantitative insights with clear storytelling, presenting financial developments in a clear and structured manner. Moreover, he enjoys writing multibagger and listicle-style copies. Outside of work, Ksheera enjoys playing the piano and exploring new places. He has a keen interest in travel, music, and continuously learning about global markets and economic trends. Catch all the Business News , Market News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates. Oops! Looks like you have exceeded the limit to bookmark the image. Remove some to bookmark this image.
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