Why Apple Stock Soared 15% in May
Key Points
Apple has been focusing its efforts on the iPhone, and sales are growing rapidly.
It has released several AI features, and it's getting ready to launch a new Siri.
AI stocks are driving market gains.
- 10 stocks we like better than Apple ›
Apple (NASDAQ: AAPL) stock rose 15% in May, according to data provided by S&P Global Market Intelligence. There was no news specific to Apple, but it's benefiting from market confidence in artificial intelligence (AI) and Apple's opportunity to leverage it.
The AI laggard
Apple stock is back in action as investors flock to all kinds of AI stocks. Apple was expected to launch an AI program similar to its tech giant peers like Microsoft and Amazon, but it never materialized. Instead, Apple focused on its popular hardware, and specifically, the iPhone.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
While the market wasn't too thrilled about it at first, the massive iPhone sales increases over the past few quarters have proven that it's been the right strategy. The iPhone is Apple's bread and butter, and focusing on that lead instead of diluting it through expanding out of its dominant space has been a winning approach.
Image source: Apple.
That doesn't mean there's no AI. Apple has launched many AI features that fit into its large ecosystem of products and emphasis on the user experience, in true Apple style. Some examples are live translation and an image cleanup tool. Apple prides itself on privacy, though, which is a big deal in the world of AI, because it scrapes the Internet for information. That could be part of the reason Apple is taking a different approach to its AI program.
It's also partnering with Alphabet to create custom large-language models (LLM) to drive its Siri digital assistant. Apple has been in the process of updating Siri for a long time, and although the launch has been delayed, reports are that it could be launched next week a the Apple Worldwide Developers Conference (WWDC).
Leading with AI
As iPhone sales soar, with a 22% year over year increase in the 2026 fiscal second quarter (ended March 28), investors are realizing that Apple's value is in its device ecosystem, which remains a highly protective moat for the tech powerhouse. The integration of Apple intelligence into the ecosystem gives it a further edge against competitors, and Apple is part of the run-up in AI stocks.
The S&P 500 is up 11% year to date, but the tech and AI-heavy Nasdaq 100 is up nearly double at 22%. The top hyperscalers have increased their 2026 capital expenditures spend, and all kinds of AI-adjacent companies including energy companies and optical companies, are dealing with soaring demand. Apple stands to gain from improvement and advances in AI, and the market is prizing that right now.
Should you buy stock in Apple right now?
Before you buy stock in Apple, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Apple wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $462,983!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,375,447!*
Now, it’s worth noting Stock Advisor’s total average return is 995% — a market-crushing outperformance compared to 212% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of June 3, 2026.
Jennifer Saibil has positions in Apple. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, and Microsoft. The Motley Fool has a disclosure policy.
Recommended Articles
