Apple’s restraint finds fans as AI spending faces scrutiny

BLOOMBERG

Apple Inc. has faced plenty of criticism from Wall Street for not spending as aggressively on artificial intelligence as its Big Tech rivals. But that strategy is suddenly a blessing for the iPhone maker.

Investors are beginning to scrutinize the huge sums companies like OpenAI, Meta Platforms Inc. and Microsoft Corp. are spending on AI, leading to heavy volatility in what had been some of the year’s biggest momentum plays. As a result, Apple’s position is being re-evaluated.

While it’s still considered a potential AI winner, it doesn’t carry the risk of heavy capital expenditures and it does have ample cash on its books. That makes Apple shares a potential haven within the technology industry if the AI trade unwinds further.

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