Is Apple Still a Buy at Its All-Time High?
Key Points
Apple's stock is trading at an all-time high, pushing the company's market cap closer to $5 trillion.
Apple's more reserved AI approach has kept its free cash flow intact as other tech giants burn billions.
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Apple's (NASDAQ: AAPL) market cap is approaching $5 trillion; shares of the company have reached a (split-adjusted) all-time high of $335 as of this writing. It would be a natural reaction to think it's too late for investors on the sidelines to get in on Apple, but the stock remains a buy, even at this extraordinary level.
First, let's talk about the momentum Apple has built recently. Strong iPhone sales, followed by the rumored debut of the folding iPhone, are creating buzz. The folding iPhone is reportedly on track to hit the market in September.
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Next, Apple has taken a fundamentally different approach to artificial intelligence (AI) than some of its competitors. While companies such as Meta Platforms are spending billions upon billions to build models from scratch, Apple is leaning into partnerships and on-device AI use cases. This reserved approach allows Apple to maintain remarkably high free cash flow at a time when other companies' free cash flow is plummeting due to AI spending.
Image source: The Motley Fool.
There's no doubt investors buying Apple stock now are purchasing at a premium, but the company's financials give it a massive moat. The company has more than 2 billion active devices and strong recurring revenue. Even at all-time highs, the stock's forward P/E ratio is about 35. Apple's revenue hit an astounding $111 billion in the first quarter of 2026.
Apple's AI approach gives it flexibility without risking as much on the balance sheet compared to other tech giants. If Apple can find its innovative swagger again, the sky is the limit. Shares of Apple have risen nearly 23% so far in 2026.
Should you buy stock in Apple right now?
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Catie Hogan has positions in Apple. The Motley Fool has positions in and recommends Apple and Meta Platforms. The Motley Fool has a disclosure policy.
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