Apple (AAPL +0.80%) stock is finally gaining momentum after a mediocre 2025. With rapid advancements in artificial intelligence (AI) coming from many companies, the market was uneasy about Apple being out of the game, with a bland assortment of AI tools.

However, the consumer tech giant is off to a great start in fiscal 2026. It reported monster iPhone sales in the fiscal 2026 first quarter (ended Dec. 27, 2025), and the stock is up 8% since it reported earnings a week ago. And for whoever lost confidence in Apple’s AI developments, CEO Tim Cook would like to say otherwise.

Image source: Apple.

Don’t underestimate Apple

As companies like Amazon, Microsoft, and Alphabet continue to pour money into developing robust AI platforms, launching large-language models and releasing a torrent of AI applications, Apple’s own releases have been greeted as underwhelming. It also pushed off its relaunch of Siri to 2026, and it recently announced an agreement with Alphabet to get it back on track for later this year.

On the first-quarter earnings call, Cook detailed some of the AI features that Apple is bringing to users. These include live translation through AirPods, AI writing tools and cleanup in 15 different languages, and visual intelligence, one of its most popular features, which gives users AI tools with which to interact on their iPhone screens.

“These are just some of the many powerful AI features that are enabling our users to do remarkable things with our products, which are far and away the best platforms in the world for AI,” Cook said. He said a few times that user privacy was an important piece of the puzzle and a guiding force in how the company is looking at AI development.

Today’s Change

(0.80%) $2.21

Current Price

$278.12

It’s all about the users

The massive 23% gain in iPhone sales signals that the market pundits have been getting this wrong. The major reason Apple has been so successful is the user experience, and Apple continues to hit all the high notes here. Its AI platform serves that purpose, and users aren’t missing the extra AI capabilities that they can get elsewhere.

“The majority of users on enabled iPhones are actively leveraging the power of Apple Intelligence,” Cook said.

However, that doesn’t mean Apple is giving up on more sophistacted AI. It’s working with Alphabet to create its own foundation models, and it’s rolling out Siri as an AI-driven chatbot.

Apple’s edge is in its sought-after devices and user experience, and the AI follows. Look for the company to release new Apple Intelligence tools and features that enhance the consumer experience in a distinctly Apple way and for the company’s stock to reflect its edge in this space.