Apple Surges As Investors Shift Away From AI Heavyweights

Benzinga

Apple surged 35% since June as investors rewarded its avoidance of the AI spending race, helping it overtake Microsoft in market value and close in on Nvidia. Analysts say Apple’s high valuation may invite a short-term pullback, though its long-term trend remains positive.

Transcript

00:00It's Benzinga, bringing Wall Street to Main Street.

00:03Apple's stock has rebounded after a weak first half of 2025, gaining 35% since June,

00:08while major AI-focused tech peers fell into the red, according to Bloomberg.

00:13Investors are rewarding Apple's reluctance to join the AI spending surge,

00:17which has helped it overtake Microsoft in market value and close in on NVIDIA.

00:22Analysts said Apple avoided the heavy capital expenditures tied to AI development

00:26and is positioned to benefit when the technology becomes profitable for mass use.

00:31Apple now trades at about 33 times forward earnings,

00:34making it one of the most expensive stocks in the Magnificent Seven.

00:37Berkshire Hathaway trimmed its Apple stake in the third quarter,

00:40though it remains its largest equity holding.

00:43Some analysts warned the stock may be due for a near-term pullback,

00:46while noting that its long-term trend remains bullish.

00:49For all things money, visit Benzinga.com.

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