It’s become one of the most reliable trades in the stock market as sentiment toward artificial intelligence swings wildly: Whatever AI stocks do, Apple Inc. does the opposite.
The iPhone maker’s stock is up 28% in 2026, making it the biggest contributor to the S&P 500 Index’s 12% climb. It’s also by far the best performer among the Magnificent Seven technology giants this year, a stark reversal from 2025, when its 8% gain put it near the bottom of the group.
The reason for the divergence is fairly simple. While most mega-cap tech companies are spending wildly on AI infrastructure, Apple is largely sitting it out and instead focusing on what it historically does best, creating products that get consumers buzzing, like its new foldable iPhone Duo. With Wall Street’s view toward AI capital expenditures seemingly in constant flux, the company’s shares have become investors’ preferred method for staying in Big Tech while avoiding some of the group’s ups and downs.
“Apple is a very liquid hedge against AI volatility, and it’s a great position to have if you’re starting to get worried about AI but still want tech exposure,” said Jordan McCall, senior portfolio manager at Russell Investments, which has $418 billion in assets and owns the company’s shares in multiple portfolios. “Apple is a flight to safety when the market gets nervous.”
The divergence was clear on Thursday, when Apple rose 0.5% and was the only Magnificent Seven stock in the green, while the broader market fell with chip stocks leading the way down, after results from Lam Research Corp. and Meta Platforms Inc. raised questions about AI spending.