Buy Apple Stock

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Buy Apple Stock

Two Reasons To Buy Apple Stock

Apple remains a highly valuable company with enormously popular products and services. Apple stock has also proven to be a successful investment for long-term investors.

In the last 10 years, Apple stock has gone up by 1120%. What's more is that Apple is also a part of the Magnificent Seven group. So, buying Apple stock is still the right call, or not? There are two key reasons why you should buy Apple stock:

A Balanced AI Approach

Most of the big names like Amazon and Alphabet are spending big on AI data centers and overall AI infrastructure. However, Apple is still on the sidelines. The company's total capex during the first 9 months of FY2026 was only $6.8 billion.

Apple is following a different AI strategy than other tech players. It is focusing more on the integration of AI systems into its existing products and services. The primary goal is to improve the ecosystem. This gives Apple less exposure to the fluctuations seen in the AI stocks.

The iPhone Demand Remains Strong

Apple's success depends on whether the iPhone remains relevant for consumers or not. For now, Apple's iPhone lineup remains relevant and is in high demand.

The iPhone revenue has grown at a CAGR of 8.8% from FY2020 to FY2025. During the first 3 quarters of FY2026, the sales of iPhones have increased by 20% y/y.

Even now, 50% of the company's revenue comes from the sales of iPhones. So, the iPhone remains a key factor for Apple's success. Based on the numbers, the demand for the iPhone 17 is at an all-time high.

The only downside worth remembering is the valuation. Apple stock is trading at a P/E ratio of 35. That might be a little high for some investors. But it's up to investors to decide whether Apple stock is worth buying at that valuation or not.

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