Apple emerges as Wall Street’s favourite AI haven as spending fears hit
The iPhone maker’s stock is up 28% in 2026, making it the biggest contributor to the S&P 500’s climb
Apple's stock has surged 28% in 2026, making it the top performer among the S&P 500's gains. Unlike other AI-focused tech giants, Apple has largely avoided spending on AI infrastructure and is instead focusing on innovative products such as its foldable iPhone Duo. This approach has made Apple a popular choice for investors seeking exposure to tech without the volatility of AI spending.
"Apple is a very liquid hedge against AI volatility, and it's a great position to have if you're starting to get worried about AI but still want tech exposure," said Jordan McCall, a senior portfolio manager at Russell Investments. The rise of Apple's stock has been in stark contrast to its previous performance in 2025, when it trailed behind other tech giants.
The reason for this divergence is that while most major tech companies are heavily investing in AI, Apple is concentrating on product innovation. This has created a negative correlation between Apple's stock and semiconductor stocks, often moving in the opposite direction. As concerns about AI spending intensify, investors are increasingly turning to Apple as a safe haven, benefiting from the company's strong free cash flow and durable earnings growth.
However, Apple's valuation is high, trading at 36 times earnings, which could potentially limit its upside if investor confidence in AI spenders improves.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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