The More Artificial Intelligence (AI) Models That Come Out, the More I'm Convinced Apple Has the Right Strategy

A big criticism of Apple (NASDAQ: AAPL) has been that its artificial intelligence (AI) rollout has been slow. Investors are concerned that it's falling behind its rivals, it's not innovating enough, and that its sluggish AI strategy could hurt the stock.

But the market is being increasingly flooded with new AI models, with the most recent one coming from social media giant Meta Platforms. It can be challenging for consumers to even know the differences between all of them and which one is truly the best.

While Apple may appear to be slow in launching AI features for its iPhones, its approach to AI may prove to be the best one in the end.

Image source: Getty Images.

Apple is spending just $14 billion on capex this year

In the AI arms race, there's one tech company that's standing apart from the pack, and that's Apple. It's only planning to spend around $14 billion on capital expenditures this year, while other tech giants ramp up significantly. Meta, for instance, projects it might spend up to $135 billion as it invests heavily in AI.

Taking a more conservative approach may not necessarily be a bad one for the company. Investors only need to look back to the DeepSeek AI controversy that emerged last year to see how quickly a company may be able to develop an advanced AI model through distillation. While that might not be a recipe for catching up to the competition, it may allow a company to get very close. But even if it's not an AI model Apple wants to develop, overall AI-related costs may come down as efficiencies improve in the tech sector.

By not spending aggressively, Apple can more carefully pick its spots for investment and, as opportunities arise in the future, make a big move when and where it makes sense to do so.

Why Apple may still be a top stock to own for years to come

It may take Apple longer to roll out cutting-edge AI features across its products and services than rivals, but the company has shown it's in no rush to do so. And realistically, it doesn't need to, either. It has a vast ecosystem of products and services, making it difficult for someone to leave simply because Siri hasn't received an update in a while.

The company can be more selective about the capabilities it wants to invest in and offer to its customers, while also prioritizing safety and privacy. Apple's growth strategy may not be an aggressive one, but it has been working for the business when looking at the longer term, and I believe it'll continue to play out that way for the company.

As long as you're willing to just buy and hold, Apple can be a great stock to own, even if it's not rushing out to invest heavily in AI.

David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Meta Platforms and is short shares of Apple. The Motley Fool has a disclosure policy.