After a relatively quiet 2025 that left investors skeptical of its artificial intelligence ambitions, Apple is back in Wall Street’s good graces. The company’s stock has climbed 8% since reporting blockbuster fiscal Q1 2026 earnings last week, driven by a 23% surge in iPhone sales and a clearer roadmap for its AI future.
Throughout 2025, rivals like Microsoft, Amazon, and Alphabet aggressively rolled out large language models and AI applications, while Apple’s offerings were perceived as underwhelming. The delay of its Siri relaunch to 2026 and its partnership with Alphabet for AI models fueled doubts about its competitiveness.
However, on the recent earnings call, CEO Tim Cook outlined a user-focused AI vision that appears to be resonating. He highlighted features like live translation through AirPods, AI writing tools in 15 languages, and Visual Intelligence—tools that allow users to interact with on-screen content using AI.
“These are just some of the many powerful AI features that are enabling our users to do remarkable things with our products, which are far and away the best platforms in the world for AI,” Cook stated, emphasizing privacy as a cornerstone of Apple’s development.
The strong iPhone sales suggest consumers aren’t waiting for flashy AI benchmarks—they’re responding to Apple’s integrated, experience-driven approach. Cook noted that “the majority of users on enabled iPhones are actively leveraging the power of Apple Intelligence.”
Looking ahead, Apple continues to develop its own foundation models with Alphabet and plans to relaunch Siri as a more capable AI chatbot. The company’s strategy remains anchored in its hardware ecosystem and seamless user experience, with AI serving as an enhancement rather than the centerpiece.
Investment Consideration: While Apple’s recent performance and AI clarity have boosted its stock, it’s worth noting that The Motley Fool’s Stock Advisor service did not include Apple among its current top 10 stock picks. The service, which has a strong track record of identifying high-growth stocks early, highlights other opportunities for investors seeking market-beating returns.
Apple’s comeback story in early 2026 underscores its resilience and ability to leverage its installed base, but as with any investment, due diligence and portfolio diversification remain key.
