Apple’s AI Strategy Fuels Stock Optimism Amid $300 Price Target

Apple's focused integration of AI into consumer devices, particularly through the iPhone 17, underscores its divergence from cloud-heavy competitors. The company's $9.5 billion capital expenditure this year—a 46% increase from 2024—signals aggressive investment in on-device AI and private cloud infrastructure.

Despite April's tariff-related volatility, Apple shares rebounded to record highs near $250, demonstrating resilience. Premium valuation concerns are offset by consistent innovation, $166 billion in cash reserves, and a history of shareholder returns.

The AI pivot reflects Tim Cook's 'privacy-first' approach, contrasting with Big Tech's data-centric models. This differentiation could redefine mobile computing as Apple prepares its iOS 18 AI features for 2025 deployment.