Apple’s (AAPL) stock had a rough start in 2025, as investors worried that the company didn’t have a clear strategy for artificial intelligence. In the first half of the year, Apple’s stock dropped 18% to make it the second-worst performer among the “Magnificent Seven” tech companies. But that changed quickly. Since July, Apple shares have surged 35%, while AI-focused companies like Meta (META) and Microsoft (MSFT) have lost ground. This is because CEO Tim Cook and his team have avoided rushing into costly AI investments, unlike many of their competitors, according to Bloomberg.
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As a result, investors now see Apple as a safer bet. Even though it’s expected to add more AI to its products, Apple hasn’t joined the massive spending race. Indeed, some investors think that the firm can benefit from AI later without the current risks. However, the stock’s recent rise has made it expensive. More precisely, Apple now trades at around 33 times expected earnings, which is a high that it has only reached a few times in the past 15 years. Its usual average is under 19.
Some experts think investors may be paying too much for Apple’s stability. In addition, Warren Buffett’s Berkshire Hathaway (BRK.B) cut its Apple holdings by 15% in the third quarter while increasing its investment in Google (GOOGL). Even though analysts see a possible short-term dip, many still believe that Apple’s long-term path looks strong, especially as AI becomes more common and Apple devices remain the go-to way for people to access new technologies.
Is Apple a Buy or Sell Right Now?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on AAPL stock based on 21 Buys, 11 Holds, and two Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average AAPL price target of $297.31 per share implies 7% upside potential.
