Apple's Unique Strategy in AI Investments
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 21 2026
0mins
Should l Buy AAPL?
Source: seekingalpha
- Capex Strategy: Apple reduced its capital expenditures by 20% last year, opting for a billion-dollar partnership with Google instead of building its own AI infrastructure, which allows the company to maintain flexibility and lower financial risks in capital-intensive technology development.
- Market Refuge: Analysts suggest that if AI investments turn out to be a bubble, Apple could emerge as the strongest refuge in the market, attracting investors back and demonstrating resilience and appeal in uncertain market conditions.
- CEO's Decision: Apple CEO Tim Cook's choice to abstain from the AI race and focus on stock buybacks with a 3% shareholder yield may reflect a cautious stance towards market trends, although it has raised questions from analysts about the company's strategic direction.
- Valuation Concerns: Despite admiration for Apple's products and business model, analysts express concerns about the stock's valuation, leading them to refrain from holding the stock currently, which could impact investor confidence and market performance.
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Analyst Views on AAPL
Wall Street analysts forecast AAPL stock price to rise
27 Analyst Rating
17 Buy
9 Hold
1 Sell
Moderate Buy
Current: 255.630
Low
239.00
Averages
306.89
High
350.00
Current: 255.630
Low
239.00
Averages
306.89
High
350.00
About AAPL
Apple Inc. designs, manufactures and markets smartphones, personal computers, tablets, wearables and accessories, and sells a variety of related services. Its product categories include iPhone, Mac, iPad, and Wearables, Home and Accessories. Its software platforms include iOS, iPadOS, macOS, watchOS, visionOS, and tvOS. Its services include advertising, AppleCare, cloud services, digital content and payment services. The Company operates various platforms, including the App Store, that allow customers to discover and download applications and digital content, such as books, music, video, games and podcasts. It also offers digital content through subscription-based services, including Apple Arcade, Apple Fitness+, Apple Music, Apple News+, and Apple TV+. Its products include iPhone 16 Pro, iPhone 16, iPhone 15, iPhone 14, iPhone SE, MacBook Air, MacBook Pro, iMac, Mac mini, Mac Studio, Mac Pro, iPad Pro, iPad Air, AirPods, AirPods Pro, AirPods Max, Apple TV, Apple Vision Pro and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Long-Term Outlook: While the memory chip market faces short-term challenges, Google's advancements may foster further development of AI algorithms, suggesting that changes in memory demand may not significantly impact the market in the long run.
See More
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- Long-term Impact Assessment: While improvements in memory efficiency may significantly affect AI models used in consumer devices, their impact on the most advanced frontier models is limited, prompting investors to view the cyclical nature of the memory chip market with caution.
See More
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