US EditionWhy Apple Might Attract More of an AI Multiple in 2026
Apple limits AI spending and holds $130 billion in cash while planning a major Siri overhaul in 2026 to regain investor confidence amid AI market skepticism.
- A new report published today at The Information argues Apple Inc.'s restrained AI strategy may pay off next year, while last month Wall Street signaled its conservative AI spending could be an advantage.
- By design, Apple Inc. limited AI-specific capital expenditures, leaving it with more than $130 billion in cash and marketable securities while adopting Google's Gemini as some leaders view large language models as commodities.
- After John Giannandrea's December retirement, Apple reassigned his team and placed Siri under Mike Rockwell, targeting the assistant's delayed overhaul for next year.
- Shares of Apple trade at around 33.0 times forward P/E, and Dan Ives projects a $350 target, implying a 28% upside if Apple delivers on AI.
- Leveraging the iPhone as a strategic advantage, Apple can distribute AI features through system-level integrations and software updates, while Siri 2.0 backed by Gemini could prompt a multiple re-rating.
14 Articles
14 Articles
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Why Apple Might Attract More of an AI Multiple in 2026
Quick Read Apple shares trade at 36.6x trailing P/E after a 5% December decline. A major Siri overhaul is expected in Spring 2026 after initial Apple Intelligence features disappointed users. Analysts see potential for the stock to reach $350 if the update drives an iPhone upgrade cycle. If you’re focused on picking the right stocks and ETFs you may be missing the bigger picture: retirement income. That is exactly what The Definitive Guide t…
Apple is often criticized for its relatively passive position in the field of artificial intelligence in the face of its rivals. A new report reveals that this strategy is in fact the result of a strong internal conviction: the current language models are only a technology intended to trivialise quickly.
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