Apple has surpassed big AI stocks like Alphabet, Microsoft, and Meta in performance over the last six months. Apple’s capex spending in 2025 was significantly lower than Alphabet’s expected capex for 2026, indicating a different approach to the AI race. Despite initial concerns, Apple seems to be in a strong position now.

AI stocks are facing scrutiny in 2026 due to high capex outlays and questions about profitability. Apple has outperformed major AI stocks like Amazon, Microsoft, and Alphabet in recent months. While the sector may recover, Apple offers investors relative safety in a challenging tech market. Apple’s strategy of avoiding heavy investments in data center infrastructure could pay off.

Apple has partnered with Google to use its Gemini AI technology for Apple Foundation Models. This collaboration allows Apple to leverage Google’s industry-leading AI models without incurring high upfront costs. Apple reported record-setting results for the first quarter of fiscal 2026, indicating a positive outlook for the company. Investors may find Apple’s stock appealing in light of these developments.

Read more at Nasdaq: How Apple Is Winning the AI Race — by Staying Out of It