Is Apple the Ultimate Stock to Buy Right Now?

Apple (AAPL) has been a standout performer in 2026, climbing roughly 25% so far - far outpacing the S&P 500's 14% growth during the same period. One reason for this impressive run is Apple's relatively low exposure to AI compared to other tech giants. While Apple is cautious about AI, it's still cautiously adopting the technology, particularly in its virtual assistant, Siri.

Notably, Siri's AI relies on Google's Gemini, not Apple's own model. This move could be a smart strategy for Apple, as it avoids the significant capital expenditures required to build its own AI infrastructure. Additionally, Apple may soon launch a subscription-based AI product suite, potentially creating a new revenue stream. However, this strategy also means Apple may not fully control the capabilities of the AI models it uses.

At present, Apple is the most expensive big tech stock, with a price-to-earnings ratio of nearly 40 times trailing earnings. While some investors see this as a sign of Apple's strength, others caution that such a high valuation could lead to sideways trading if growth projections are not met. With fiscal 2027 underway, future stock pricing will depend on 2028 projections.

Looking ahead to 2028, Apple's valuation is still high at 31 times earnings, roughly equivalent to the average big tech stock. This suggests that Apple may have about two years' worth of growth priced into its stock, which could limit medium-term returns. As such, while Apple's recent success is undeniable, some analysts argue that investing in AI firms with lower valuations might be a wiser choice.