Fun Fact: Apple (AAPL) Is the Only Mag 7 Company Whose Capex Is Declining

FomoAnxiety · 2026-03-19T21:49:14+00:00

Apple is the only major tech company experiencing declining capital expenditures, with a 19% drop in Q4 2025. Despite criticism over its AI strategy, Apple stands to earn over $1 billion from generative AI apps by 2026 through its App Store. AAPL stock has a Moderate Buy rating with a target price suggesting a 22.35% upside.

FomoAnxiety

2026-03-19 21:49:14

Abstract generation in progress

Apple AAPL -0.43% ▼ is the only company among the so called Magnificent 7 technology giants whose capital expenditures (capex) are declining.

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In the fourth quarter of 2025, Apple’s capex decreased 19%. That compares to a 95% year-over-year increase for Google parent company Alphabet GOOGL -0.23% ▼ and an 89% annualized increase for Microsoft MSFT -0.71% ▼ .

Apple has been criticized for not having a more robust artificial intelligence (AI) strategy and those criticisms have weighed on the company’s share price. But with concerns growing that the hyperscaler tech giants, which also include Amazon AMZN -0.74% ▼ and Meta Platforms META -1.46% ▼ , are spending too much on AI, Apple looks prudent by comparison.

Apple’s AI Revenue

However, while Apple might not be developing a dynamic AI strategy of its own, the company is still cashing in on the artificial intelligence boom. The iPhone maker stands to bring in more than $1 billion in App Store fees in 2026 from other companies’ generative-AI apps, mostly ChatGPT, according to data from App Magic.

Apple’s lucrative App Store model lets the consumer electronics giant profit from AI as a gatekeeper without having to spend billions of dollars to buildout the infrastructure needed to power the technology. AAPL stock has declined 8% this year.

Is AAPL Stock a Buy?

Apple stock has a consensus Moderate Buy rating among 24 Wall Street analysts. That rating is based on 14 Buy, nine Hold, and one Sell recommendations issued in the last three months. The average AAPL price target of $304.66 implies 22.35% upside from current levels.

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