Key Points
-
Despite staying out of the AI infrastructure spending race, Apple shares have still performed exceptionally well.
-
Thanks to a powerful ecosystem and the iPhone’s dominance, Apple’s economic moat is wider than some think.
-
When new technologies come along, Apple might be the only business on Earth that can afford to take its time.
- These 10 stocks could mint the next wave of millionaires ›
Capitalism is defined by the constant threat of disruption. The leading companies during a specific era rarely maintain their positions over time. This has become even truer in recent times, given how rapidly technology is evolving.
It seems that Apple (NASDAQ: AAPL) has defied the laws of capitalism. It launched the iPhone in 2007, which was an immediate hit. In 2009, it became the fifth most valuable business in the world. For the vast majority of the 2010s, it carried the highest market capitalization thanks to the phenomenal success of its various product and service releases.
Missed AI’s “Act 1”? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn’t buy Nvidia in 2005. But according to our analysts, we’re only at the end of “Act 1″—the R&D phase. “Act 2” is the global rollout. Continue »
Right now, in October 2026, Apple is worth $5 trillion. The company trails only Nvidia, the artificial intelligence (AI) hardware powerhouse, which is valued at $5.4 trillion. It won’t be long until Apple has sat at or near the top for almost two decades. Here’s the clear takeaway for investors (hint: it’s an extremely bullish indicator).
Image source: The Motley Fool.
St(AI)ying at the top
Apple has been a darling for investors. Shares have soared 2,190% over the past 15 years (as of Oct. 14). Credit goes to its unrivaled ability to consistently deliver fantastic hardware devices that pair seamlessly with its software offerings. This is what makes up the powerful ecosystem.
Success has continued in recent years, even as the tech landscape has fundamentally changed. OpenAI launched ChatGPT on Nov. 30, 2022. Since that seminal moment, it has been an arms race among select businesses to rapidly develop data centers to train and run AI models.
According to Vanguard, the five leading hyperscalers will spend close to $800 billion on capital expenditures (capex) in 2026, a figure expected to exceed $1 trillion in each of the following four years. None of these management teams want to fall behind what could be a generational platform shift.
Apple has watched from the sidelines. In fact, critics have called out its AI strategy as too slow, citing the delays that have plagued the updated Siri.
The positive development here, though, is that Apple has maintained its impressive financials. Capex totaled just $6.8 billion through the first nine months of fiscal 2026 (ended June 27). Free cash flow (FCF) came in at an astonishing $110 billion. Comparatively, Alphabet, historically hailed as a lucrative capital-light enterprise, posted negative FCF during the three-month period that ended June 30.
The moat might be even wider
There’s no question that Apple has remained a dominant company. Since the release of ChatGPT, its share price is up 133%. Consequently, the business hasn’t lost its position on the top-five most valuable list. The other four include Nvidia, Alphabet, Microsoft, and Amazon.
Investors come away being more bullish about Apple’s competitive position. It doesn’t need to rush chasing the hottest tech trend. That’s true even if AI has game-changing potential. The business can steadily integrate AI into its products and services.
Apple’s economic moat, supported by its brand recognition and customer switching costs, might be even wider than most investors think. The walled-garden ecosystem is robust. Apple’s distribution is unmatched, as its installed base hit a record of more than 2.5 billion devices in January.
And it has the single greatest consumer hardware product ever: the iPhone. For the foreseeable future, the odds are heavily stacked in its favor as the primary medium for people to interact with AI tools.
Apple is perhaps the only business on Earth that can afford to take its time when new technologies come along. It doesn’t need to move fast and break things, since it always seems to operate from a position of power. This plays to its advantage going forward. And it increases the likelihood that Apple will remain one of the most valuable companies in the world years from now.
We just issued ‘double down’ alerts on 3 stocks — find out if Apple made our list
Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.
On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:
- Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $564,753!*
- Apple: if you invested $1,000 when we doubled down in 2008, you’d have $65,239!*
- Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $391,581!*
Right now, we’re issuing “Double Down” alerts for three incredible companies, available when you join Stock Advisor, and there may not be another chance like this anytime soon.
*Stock Advisor returns as of October 16, 2026.
Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.
