Apple's more cautious approach toward AI has attracted a lot of suitors to its stock.
However, the stock has become pricey and could be in trouble if sentiment changes.
The "Magnificent Seven" is a grouping of stocks used to describe some of the largest companies in the world that have helped lead the U.S. stock market higher over the past decade. It is made up of:
For U.S.-listed stocks, all seven of these are in the top 10, so being on this list is a big deal. However, 2026 hasn't been the greatest year for the Magnificent Seven. The S&P 500 is up about 12.3% this year, and only three stocks are outperforming it: Apple, Amazon, and Microsoft. But which one of these is doing the best? It's the non-AI one.
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The top performer so far in 2026 has been Apple, up about 29%. That's practically double the second-best performer, Amazon, which has risen around 15%. So, what has separated Apple from the competition? I think there are two reasons.
First, Apple really isn't an AI stock. While its products have some AI features, it's not spending hundreds of billions of dollars on data centers like every other company on this list (besides Nvidia, which is selling the equipment for these data centers). As a whole, the market has been a bit bearish on the AI buildout lately, and Apple has been a haven for investors who aren't as keen on the long-term prospects of AI.
In fact, Apple is the only stock among the top 10 largest companies on U.S. exchanges that doesn't have significant AI investments or business cases riding on the AI buildout. This has made it a safe haven for non-AI investors and has boosted its stock.
Another reason Apple has done well this year is that its iPhone 17 lineup was the most popular of any of its previous models. This has driven sales growth and has made Apple a respectable business again.
However, Apple's day of reckoning could be coming. Outside of Tesla (which has a sky-high valuation of 424 times trailing earnings), Apple is by far the most expensive stock in the Magnificent Seven.

NVDA PE Ratio data by YCharts
As a result, I think the stock could be getting a bit too pricey, and investors need to watch out. Apple's strong performance this year hasn't come entirely from business results, and if the market flips its stance on AI and becomes bullish on it again, Apple's stock could sell off in favor of some AI-focused investments. It's about as good as it gets for Apple sentiment right now. As a result, I don't think Apple stock is a buy right now.
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Keithen Drury has positions in Alphabet, Amazon, Meta Platforms, Microsoft, Nvidia, and Tesla. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla. The Motley Fool has a disclosure policy.