Anthropic Wiped $1 Trillion From Tech Stocks. I Still Can’t Stop Buying This One.

• Apple (AAPL) is bullish, trading at $266.17 with $297.46 analyst price target amid record results.

• Apple’s integrated hardware-software ecosystem insulates it from AI-driven software disruption threatening competitors.

• The analyst who called NVIDIA in 2010 just named his top 10 AI stocks. Get them here FREE.

The bull case for Apple (NASDAQ:AAPL) might be obvious, and I’ll admit upfront this is the boring pick. It’s the stock your uncle owns, the one that doesn’t get breathless coverage on finance forums anymore because it’s so large and obvious. When Anthropic’s new Claude tool triggered a nearly $1 trillion wipeout in software and services stocks earlier this year, the conversation was almost entirely about enterprise software, SaaS multiples, and which application-layer companies were about to get eaten alive. Apple barely came up. That’s the point.

Anthropic’s threat targets companies that sell software to businesses. Claude’s agent plugs into legal, sales, and marketing workflows and competes directly with subscription-based products. Apple sells devices wrapped in a services ecosystem so tightly integrated that leaving feels genuinely painful, with no subscription dependency on its operating system. That’s a different business model entirely, and it’s why Apple is one of the only major tech companies not vulnerable to AI-made software replacing its core revenue stream. The moat is architectural: a hardware-software-services integration that makes switching genuinely painful.

Most of Big Tech is spending hundreds of billions racing to build AI infrastructure, hoping returns justify the bet. Apple is being deliberate instead, which means it isn’t risking its balance sheet on a moonshot that may not pay off in five years.

READ: The analyst who called NVIDIA in 2010 just named his top 10 AI stocks

Apple just posted an all-time record quarter. Revenue hit $143.8 billion in Q1 FY2026, up 15.65% year-over-year. iPhone revenue came in at $85.27 billion, up 23.3% year-over-year, the best iPhone quarter in company history. EPS came in at $2.84, beating the $2.6708 estimate by 6.34%. Tim Cook called it “unprecedented demand, with all-time records across every geographic segment.”

The number I keep coming back to is operating cash flow: $53.93 billion in a single quarter, up 80.14% year-over-year. That’s a machine.

The Services segment deserves its own mention. Services revenue hit a new all-time record of $30.01 billion in Q1 FY2026, up 14% year-over-year, and it’s been setting records for four consecutive quarters. Services carry structurally superior margins because the cost of sales for Services was $6.46 billion versus $44.03 billion for Products in Q2 FY25. Every dollar of Services growth is worth more than a dollar of hardware growth.

While other tech giants pour capital into GPU clusters and AI research labs, Apple methodically returns cash to shareholders. The company repurchased $24.70 billion of its own stock in Q1 FY2026 alone, and authorized an additional $100 billion buyback program in Q2 FY25. Full-year FY2025 buybacks totaled $90.71 billion. The dividend is modest at $1.03 per share annually with a 0.38% yield, but the buyback compounds shareholder value quietly over time.

Greater China is the honest risk: China revenue dipped in Q2 and Q4 FY2025 amid trade tensions and geopolitical friction. But Q1 FY2026 showed China surging back to $25.53 billion from $18.51 billion a year earlier, which tells me demand is there when the environment cooperates. That risk hasn’t changed my thesis because Apple’s installed base of over 2.5 billion active devices gives it a cushion no single geography can undermine.

The stock trades at a trailing P/E of 35x, which is a premium multiple, reflecting Apple’s evolution well beyond consumer electronics. With an analyst consensus price target of $297.46 against a current price of $266.17, the upside case is intact. The Services flywheel is accelerating, capital returns are compounding, and in a market terrified of AI disruption, Apple is one of the few large-cap tech companies the AI wave cannot easily wash away.

Wall Street is pouring billions into AI, but most investors are buying the wrong stocks. The analyst who first identified NVIDIA as a buy back in 2010 — before its 28,000% run — has just pinpointed 10 new AI companies he believes could deliver outsized returns from here. One dominates a $100 billion equipment market. Another is solving the single biggest bottleneck holding back AI data centers. A third is a pure-play on an optical networking market set to quadruple. Most investors haven’t heard of half these names. Get the free list of all 10 stocks here.