An anonymous reader quotes a report from Bloomberg: Shares of Apple were battered earlier this year as the iPhone maker faced repeated complaints about its lack of an artificial intelligence strategy. But as the AI trade faces increasing scrutiny, that hesitance has gone from a weakness to a strength -- and it's showing up in the stock market. Through the first six months of 2025, Apple was the second-worst performer among the Magnificent Seven tech giants, as its shares tumbled 18% through the end of June. That has reversed since then, with the stock soaring 35%, while AI darlings like Meta Platforms and Microsoft slid into the red and even Nvidia underperformed. The S&P 500 Index rose 10% in that time, and the tech-heavy Nasdaq 100 Index gained 13%. [...] As a result, Apple now has a $4.1 trillion market capitalization and the second biggest weight in the S&P 500, leaping over Microsoft and closing in on Nvidia. The shift reflects the market's questioning of the hundreds of billions of dollars Big Tech firms are throwing at AI development, as well as Apple's positioning to eventually benefit when the technology is ready for mass use. "It is remarkable how they have kept their heads and are in control of spending, when all of their peers have gone the other direction," said John Barr, portfolio manager of the Needham Aggressive Growth Fund.
Bill Stone, chief investment officer at Glenview Trust Company, added: "While they most certainly will incorporate more AI into the phones over time, Apple has avoided the AI arms race and the massive capex that accompanies it." His company views Apple's stock as "a bit of an anti-AI holding."
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