‘Thinking Differently’: Apple Stock is Primed to Beat the Market, Says Investor

Throughout its history, **Apple (NASDAQ:AAPL) **has made a name for itself as a company that’s not afraid to do things a little bit differently. As the technological giants are embarking on a generational capex spending spree, Apple is standing apart yet again.

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The company spent some $12.7 billion last year in capex. While it’s not nothing, it pales in comparison to the hundreds of billions that some of its peers are anxious to shell out. Should investors be worried that this will leave the Silicon Valley stalwart in the dust as the AI revolution picks up steam?

Investor Adam Levy actually sees AAPL’s willingness to “buck the trend” of massive spending outlays as an advantage.

“While Apple has been seen as a laggard in artificial intelligence development and integration with its devices, the company is now considered a safe haven amid the AI arms race among big tech companies,” says the 5-star investor.

Levy points out that Apple has a long history of demonstrating the ability to create phenomenal user experiences without rushing along at the cutting edge of technological innovation. He believes that the company is poised to do so once again.

The investor argues that Apple’s leading consumer products – i.e., iPhones, Apple Watches, and AirPods – will remain a fixture on the technological scene. And, sweetening the deal, the company won’t need to shell out tons of money to ensure they remain popular.

Levy predicts that the potential Siri ramp could drive additional sales, as its AI capabilities will likely only work on newly released iPhones. That could drive a “massive upgrade cycle,” adds the investor.

Moreover, the fact that the company’s free cash flow won’t be unduly hampered by massive capex spending provides another reason for optimism, according to Levy.

“Instead of spending its cash on AI data centers, Apple can return more capital to shareholders. Its primary vehicle for doing so is share repurchases,” explains the investor. He adds that since Tim Cook took over the reins, Apple has spent more than $700 billion repurchasing its stock.

Another benefit: Apple doesn’t have all the uncertainty that the other hyperscalers are experiencing due to their massive capex.

“That could push more investors to pile into the stock this year, leading it to outperform,” concludes Levy. (To watch Adam Levy’s track record, click here)

Wall Street is feeling pretty good as well. With 17 Buys, 9 Holds, and 1 Sell, AAPL enjoys a Moderate Buy consensus rating. Its 12-month average price target of $307.55 points to gains of ~16% in the year ahead. (See AAPL stock forecast)

Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

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