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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting

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From: Bill Wolf

11/11/2025 7:39:58 AM

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Apple’s penny-pinching

Apple has faced plenty of criticism for not spending as aggressively on artificial intelligence as its Big Tech rivals. But that strategy is suddenly a blessing.

Investors are beginning to scrutinize the huge sums of money that companies like OpenAI, Meta and Microsoft are spending on AI, leading to heavy volatility. As a result, Apple’s position is being re-evaluated.

While still considered a potential AI winner, the iPhone maker doesn’t carry the risk of heavy capital expenditures and has ample cash. That makes its shares a potential haven within the technology industry if the AI trade unwinds further.

“There is this positive feel for Apple that they don’t have to answer the big question that everybody else does, which is: What is the return on your invested capital in all of these other areas?” said Brian Mulberry of Zacks Investment Management.

The thesis is simple. Apple will benefit as it taps other companies’ models to deliver AI features to its millions of customers while avoiding much of the heavy spending required to develop its own capabilities.

“Apple has the least exposure of the Mag 7 to AI in terms of where it is spending money and how leveraged it is,” said Brian Pollak, portfolio manager and head of the investment policy committee at Evercore. “It is absolutely true that it is a potential beneficiary of AI without having to spend all the capital that its cohorts are.”

Apple’s capital expenditures are expected to be about $14 billion in its current fiscal year, which ends in September 2026. By comparison, Microsoft is projected to have capex of more than $94 billion in its own fiscal year, which ends in June. Meta, a company half Apple’s size, is set to have capex of more than $70 billion in 2025. — Ryan Vlastelica and Carmen Reinicke

Word from Wall Street

“Even if everything works, there will be spectacular winners, and probably some equally spectacular losers as well given the amount of capital involved and winner takes all nature of portions of the AI ecosystem."

Tarek Hamid
JPMorgan Chase

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