Apple’s (NASDAQ: AAPL) measured approach to artificial intelligence (AI), avoiding spending massive amounts of capital in this area like its big tech peers, appears to be a winning strategy from the market’s point of view.
Shares have climbed 22% in 2026 (as of July 20)
They trade in record territory. Should investors buy this “Magnificent Seven” stock right now? Investors might want to think twice about purchasing this business.
That’s because Apple shares aren’t cheap. The current price-to-earnings ratio of 39.5, which is near an 18-year high, indicates heightened investor enthusiasm. This adds greater downside risk should the business report financial results that disappoint investors.