Apple is sitting out the AI spending spree, taking a leaf from John D. Rockefeller's Standard Oil playbook. And it's working for the stock.
On Thursday, shares were up 1.2%, to $331.46, on track to set a record high for the second consecutive day. The stock closed 4% higher on Wednesday, not only hitting a new high but taking the top spot as the Dow's best performer and pushing the company's market cap up to $4.8 trillion.
For many on Wall Street, Apple is the "anti-AI" trade by virtue of its decision to keep its AI spending in check -- a much different tack than its fellow Magnificent Seven members. Alphabet, Microsoft, Amazon.com, and Meta Platforms, for example, are spending hundreds of billions.
Apple is doing almost exactly what Rockefeller did when he was starting out in the mid-1800s. He knew oil drilling was risky, let wildcatters pay the high price, and went into the refining end.
The iPhone maker is letting its Mag Seven peers pony up for AI research and development, and is ready to swoop in to grab the best models when the dust settles.
Another Apple strategy is acquisitions. It's on the hunt for companies to build AI server chips to run AI, according to the Information website.
Rockefeller won at oil because he controlled distribution. Right now, Apple leads in smartphones, is near the top in the personal computer market, and is determined to keep a hold on the devices -- the iPhone and the Mac -- where AI is used mostly by consumers.
Apple didn't respond to request for comment from Barron's about its AI spending strategy.
Wall Street, though, is liking the way Apple is playing -- at least in the moment.
For the quarter, the stock is up more than 14%; the Nasdaq is down 0.7%. Apple hasn't had this good of a quarterly performance since last September 2025, when it climbed 24%, according to FactSet.
Except for Meta's 21% gain, the quarterly numbers aren't nearly as good for most others in the Mag Seven. Alphabet is up 4.2%, Microsoft 6.6%, and Amazon 7%.
Apple's good times won't go on forever, of course. A big test will come this fall when the iPhone 18 makes its debut.
But for now, here's looking at you, John D. Rockefeller.
Write to Kit Norton at kit.norton@barrons.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
July 16, 2026 13:57 ET (17:57 GMT)
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