Apple Surges as AI Winner with Record Low Capital Expenditure

Apple's stock has surged as it became the AI winner that spends the least on AI. The company has achieved this despite its peers, including Alphabet and Microsoft, investing heavily in AI technology.

In the last year, Apple's stock has returned 38.06%, while its year-to-date growth stands at 14.1%. However, shares have cooled slightly after reaching a 52-week high of $344.27 on July 30 during the fiscal Q3 print.

During this quarter, Apple reported revenue of $109.4 billion, which grew by 16.36%, while earnings per share (EPS) of $2.02 beat estimates by 6.8%. The iPhone revenue jumped 22% to $54.3 billion, marking Apple's ninth consecutive EPS beat.

Investors are re-rating Apple as the AI beneficiary without balance-sheet risk due to its low capital expenditure. Tim Cook described Siri AI as 'a completely reimagined version of Siri that is profoundly capable, deeply personal, and integrated seamlessly across our platforms.'