Key Points
Shares of Apple (NASDAQ: AAPL) climbed to near record highs on Friday, as investors applauded the iPhone maker’s relatively modest artificial intelligence (AI) investments.
Image source: The Motley Fool.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same “Total Conviction” signal is flashing for a company 1/100th the size of Nvidia. Continue »
Apple’s conservative strategy is looking smarter by the minute
Hyperscalers and other tech giants are spending staggering sums to build out their artificial intelligence (AI) infrastructure networks. For just two examples, Amazon and Alphabet are planning to spend a stunning $200 billion each in 2026 alone.
Investors are beginning to question whether these massive capital expenditures will produce the type of returns they’ve grown accustomed to. Moreover, fears are mounting that the AI boom could be expanding into a bubble. Bubbles eventually burst — and often lead to a crash.
You don’t always need to spend money to make money
Rather than spending hundreds of billions of dollars in a futile attempt to keep pace with the latest AI advances, Apple is partnering with other AI leaders to bring the products of their massive spending to its customers.
Apple has partnered with Alphabet, Nvidia, and OpenAI to bolster the AI features on its iPhones and other devices. It’s also working with Chinese internet giants Alibaba and Baidu to offer AI-powered services in China.
This collaborative approach is prudent and cost-efficient. In turn, savvy investors are beginning to appreciate Apple’s AI strategy more each passing day.
Should you buy stock in Apple right now?
Before you buy stock in Apple, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Apple wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $371,519!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,281,302!*
Now, it’s worth noting Stock Advisor’s total average return is 892% — a market-crushing outperformance compared to 206% for the S&P 500. Don’t miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of July 24, 2026.
Joe Tenebruso has positions in Amazon. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Baidu, and Nvidia. The Motley Fool recommends Alibaba Group. The Motley Fool has a disclosure policy.
5 Stocks Our Experts Predict Could Double In the Next Year
By submitting your email, you'll also get a free pivot & flow membership. A free daily market overview. You can unsubscribe at any time.