Apple’s AI strategy faced criticism earlier in the year, leading to a decline in its stock price. However, the opposite effect occurred. As questions about spending and investment in AI increased, Apple’s slow and cautious approach transformed from a weakness into a strength, which was reflected in the stock market.

Apple shares gained value

In the first six months of 2025, Apple was the second-worst performing company among the “Fantastic Seven” tech giants, with its shares falling 18%. However, this trend reversed completely.

Apple shares surged 35% during this period, while AI giants Meta Platforms Inc. and Microsoft Corp. incurred losses, and even Nvidia Corp. lagged behind Apple. During this time, the S&P 500 Index rose 10%, and the technology-heavy Nasdaq 100 Index increased by 13%.

Portfolio manager John Barr noted that Apple’s approach—unlike its competitors—is commendable for “maintaining its logic and keeping its spending under control.”

As a result, Apple’s market capitalization has now reached $4.1 trillion, surpassing Microsoft and becoming the second-largest player in the S&P 500, closing in on Nvidia.

This shift reflects the market beginning to question the hundreds of billions of dollars that Big Tech companies are spending on AI development, while also highlighting Apple’s positioning to benefit from this technology once it becomes mass-market.

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