Apple’s restrained AI spending—$14 billion versus Microsoft’s $94 billion and Meta’s $70 billion—is emerging as an advantage as investors scrutinize massive tech spending.

The iPhone maker’s stock is outperforming Big Tech rivals as investors seek a more defensive investment amid concerns about returns on massive AI capital spending.

Yet Apple remains the worst Mag 7 performer this year, prompting debate over whether its strategy represents a smart hedge or merely a missed opportunity.

Apple Inc. has faced plenty of criticism from Wall Street for not spending as aggressively on artificial intelligence as its Big Tech rivals. But that strategy is suddenly a blessing for the iPhone maker.

Investors are beginning to scrutinize the huge sums companies like OpenAI, Meta Platforms Inc. and M

See Full Page