Among all the mega-cap tech stocks in the U.S. market I’ve largely ignored for most of the past year, Apple (NASDAQ:AAPL) is the first company that comes to mind. 

Much of that perspective has to do with Apple’s slowing growth rate (with negative growth reported in a number of the company’s past quarters) as well as its seeming lack of an AI strategy. Or, at least, a coherent one. 

Apple has lagged other high-growth mega-cap tech stocks on the basis of its slower growth and less AI exposure. However, I have noticed a meaningful shift in sentiment (in a positive way) toward Apple of late, as investors look for companies that are likely to produce meaningful cash flow growth, but won’t burden their investors or balance sheets with tons of AI-related debt or CapEx. 

Here’s why I think there’s something to that thesis, and why Apple is starting to look more like a stable growth stock worth considering here. 

Less Is More, At Least When It Comes to AI Spending

AI visual

Looking at the broader Magnificent 7 grouping of mega-cap tech stocks, the hundreds of billions of dollars that are being earmarked by just a few companies to expand their AI offerings and invest in the compute necessary to power what they see as a race for AI dominance has benefited specific chip companies such as Nvidia (NASDAQ:NVDA), now the largest company in the world.

However, for the companies actually building out the AI applications of the future, being able to do so without breaking the bank is becoming an increasingly important narrative building underneath the surface. Companies like Alphabet (NASDAQ:GOOG) and Tesla (NASDAQ:TSLA) have developed their own chips, and may be looking to sell these to other companies in the AI ecosystem. 

With that in mind, Apple’s own development of its proprietary chips used in its own devices can be viewed in a positive light. In fact, Apple has been among the first-movers in developing its own chips, which have some pretty impressive performance metrics when looking at mobile. 

But what’s most interesting about Apple’s recent ascendence is the fact that the company’s relative lack of AI spending has become the key story. While Apple’s AI efforts have disappointed investors thus far, the fact that this company isn’t spending to the same degree as its peers has reassured some investors concerned about cash flow growth over time. 

Outlook for Apple in 2026

Apple logo in front of an office building

I think Apple’s global growth story will be front and center in 2026. The company’s most recent iPhone has seen strong sales out of the gate, but I think investors will want to see strong momentum from other core business segments (services in particular), which will continue to drive outsized cash flows that can be reinvested in product innovation and development.

I think Apple is more of a hardware than a software play still, which could actually bode well for the company if valuations in the software/AI corners of the tech market weaken. Apple’s entrenched and loyal consumer base, in combination with its world-class brand, provide a moat for this company which is hard to beat. 

I have no idea what 2026 will bring. But if we are indeed due for lower valuations as growth expectations come down, Apple is a company that’s already had its underlying valuation hit to a certain degree. I think Apple could be an outperformer in the world of mega-cap tech stocks, though I’m still viewing this company through a speculative lens.