Is Apple Stock Back to Being a Market Leader?

By Keithen Drury – Mar 12, 2026 at 1:45AM ESTKey PointsApple is notoriously not spending a ton on building AI infrastructure, in contrast to its peers.Apple is seen as an alternative investment in tech for those who are skeptical of the massive AI spending that's going on.Apple's (AAPL 0.01%) business has been in a bit of a lull over the past few years. There were questions surrounding its AI strategy (there still are), and its ability to sell more products. Its revenues have ranged from mid-single-digit percentage growth to actual contraction, and investors started to question whether it had lost its status as a market leader. Over the past few months, though, Apple's stock has rallied, causing it to potentially regain market-leading status. But will this upswing persist? Image source: Apple. Apple's lack of AI spending is attractive to some investors Apple's business is fairly easy to comprehend. It sells consumer tech that's simple to use. That simplicity has helped make it the most popular tech brand in the U.S., and it has created a loyal user base. However, that loyalty has come into question over recent years as its competitors have launched several AI features for their smartphones that the iPhone doesn't have. While this hasn't led to a mass exodus from Apple's ecosystem yet, there could come a day when a game-changing feature is debuted that causes that to occur. ExpandNASDAQ: AAPLAppleToday's Change(-0.01%) $-0.02Current Price$260.81Key Data PointsMarket Cap$3.8TDay's Range$259.55 - $262.1352wk Range$169.21 - $288.62Volume26MAvg Vol48MGross Margin47.33%Dividend Yield0.40% However, Apple's far lower AI-related spending is actually what may make it an attractive option in this market. The AI sector's momentum flagged in August 2025, and it's still facing headwinds. Nvidia (NVDA +0.64%), the most popular AI stock, has gained a mere 5.5% since then, while Apple is up almost 30%. This shows that investors may be looking for safe-haven investments that are less exposed to AI-related spending -- and Apple's capital expenditures have stayed low while those of its big tech peers have exploded. MSFT Capital Expenditures (TTM) data by YCharts. Some investors today feel far more comfortable investing in a known business like Apple than they do investing in some of the hyperscalers that are transforming into AI-first operations. While this strategy may work out for these companies, it could also be a flop, wasting tens or hundreds of billions of dollars. However, if generative AI is all that these companies expect it to be and more, Apple could be in a rough spot, as it may eventually need to rent out computing capacity from other companies to run its own AI models. Time will tell which approach is right. But right now, the market is saying with its dollars that it prefers the more tame approach to AI that Apple is taking. As a result, it has reclaimed second place on the list of the world's largest companies. I think Apple's strategy is risky and has a huge chance of flopping, which is why I'm hesitant to call it a market leader. I think it's more of a market alternative, and it could be a few years before we know how well this alternative investment strategy will work out.Read NextMar 10, 2026 •By Timothy GreenThe PC Collapse Has a Winner -- and It's Not Who You ThinkMar 9, 2026 •By Justin PopeIs Apple Stock a Buy Now?Mar 9, 2026 •By David Jagielski, CPAApple's Latest Move Is a Brilliant One, and It Could Be a Game Changer for the StockMar 9, 2026 •By Sean WilliamsApple Could Have Purchased Any of 488 S&P 500 Companies -- Instead, It's Made an Aggressive $841 Billion InvestmentMar 5, 2026 •By Travis HoiumDoes Apple Have a New Hit Product? I Think So!Mar 5, 2026 •By Neil PatelIs Apple Stock Going to $1,000?About the AuthorKeithen Drury is a contributing Motley Fool technology analyst covering AI, semiconductors, cybersecurity, and SaaS stocks. In addition to The Motley Fool, Keithen is a mechanical engineer and has held roles at Honeywell and smaller industrial companies like Brand Hydraulics and Lincoln Industries. He holds a bachelor’s degree in mechanical engineering from Dordt University.TMFTripleOptionStocks MentionedAppleNASDAQ: AAPL$260.86(+0.01%)+$0.03MicrosoftNASDAQ: MSFT$404.73(-0.25%)-$1.03AmazonNASDAQ: AMZN$212.65(-0.78%)-$1.68NvidiaNASDAQ: NVDA$185.94(+0.64%)+$1.18*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.