2.5 Billion Reasons This Top Warren Buffett Stock Isn't an Artificial Intelligence (AI) Laggard

By Neil Patel – Mar 23, 2026 at 7:00AM ESTKey PointsApple spent only $2.4 billion on capital expenditures in its latest fiscal quarter.The tech giant has a jaw-dropping number of hardware products in use around the world.It will be extremely difficult for artificial intelligence to disrupt Apple’s flagship products.These days, all anyone can talk about is artificial intelligence (AI). Observers are focused on the potential for this technology to boost economic productivity. And investors have generally gravitated toward companies leading in AI innovation. The top holding of Berkshire Hathaway, one that has put up an amazing return in the past decade, has been viewed as an AI laggard. But investors should understand that this might not prove to be the case. Here are 2.5 billion reasons why. Image source: The Motley Fool. Don't underestimate this company's distribution advantage While Alphabet, Microsoft, Amazon, and Meta Platforms each plan to spend 12-figure sums on capital expenditures, primarily to expand AI-related computing capacity, Apple (AAPL 0.38%) is resting on a powerful advantage that its peers simply do not have: product distribution. Sure, the consumer tech enterprise, which spent just $2.4 billion on capex in Q1 2026 (ended Dec. 27, 2025), hasn't made notable progress releasing game-changing AI features. And its update to make Siri a more capable AI-powered personal assistant has been delayed. However, I think Apple's competitive standing lets it operate from a position of strength. On the company's latest earnings call, CEO Tim Cook announced that there are now more than 2.5 billion active Apple devices around the world. That figure continues to reach new records with each passing quarter. And it showcases how popular the company's hardware products continue to be. ExpandNASDAQ: AAPLAppleToday's Change(-0.38%) $-0.95Current Price$248.00Key Data PointsMarket Cap$3.6TDay's Range$246.01 - $249.2052wk Range$169.21 - $288.62Volume54KAvg Vol46MGross Margin47.33%Dividend Yield0.42% All eyes on the iPhone Perhaps the most obvious reason that Apple isn't falling behind in the AI race is because with the iPhone, it sells the greatest device the world has ever seen. This single product line, which is almost two decades old, generated 59% of Apple's overall revenue in the latest fiscal quarter -- and its sales were up an astonishing 23% during the period to $85.3 billion. The biggest threat to Apple in the age of AI is that a competing product might become the primary gateway to the internet. In the face of various tech waves this century, from mobile to cloud computing and now AI, the iPhone remains at the top of the food chain. It's difficult not to have confidence that in five or 10 years, this piece of hardware will still hold its dominant position. There are companies out there, like OpenAI and even Apple, trying to develop AI-native devices. However, it will be a daunting task to disrupt the iPhone, which is likely to remain the leading personal hardware product for consumers. This will naturally make Apple an AI leader.Read NextMar 23, 2026 •By Sean WilliamsWarren Buffett's Successor, Greg Abel, Has $64 Billion of Berkshire Hathaway's Assets Invested in 3 Unstoppable AI StocksMar 22, 2026 •By Patrick SandersApple Stock Is Doing Something It Hasn't Done Since 2022.

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