3. Apple Inc. (NASDAQ:AAPL)
Motley Fool Asset Management’s Stake: $145.41 Million
Apple Inc. (NASDAQ:AAPL) received a lot of flak for not jumping on the AI bandwagon and sitting out the massive capex spending chorus. The Cupertino giant was later proved to be right. As fears about roi on AI spending rattle major tech stocks, Apple remains strong with a strong cash position and fundamentals.
Apple iPhone demand is showing signs of a rebound. Apple Inc. (NASDAQ:AAPL) led global smartphone shipments in the first quarter of 2026, with volumes rising about 5% from a year earlier, even as the broader market contracted amid memory shortages and softer demand, according to Counterpoint Research. The firm said Apple Inc. (NASDAQ:AAPL) ranked first globally in Q1 for the first time, capturing a 21% market share alongside its year-over-year growth. It added that the U.S. tech company remains one of the most insulated from the memory crunch, supported by its premium positioning and tightly controlled supply chain.
Apple Inc’s (NASDAQ:AAPL) strong service business is also a huge growth catalyst for the company. This segment includes iCloud, Apple Music, Apple TV+, payments, and App Store fees — all high-margin, recurring revenue streams. The business now accounts for roughly 21% of Apple’s overall revenue and has become a $100 billion a year business.
With over $200 billion in cash and a long history of consecutive dividend growth, Apple Inc. (NASDAQ:AAPL) can make strategic moves to maintain market dominance while also expanding into other high-margin businesses like services, wearables, and emerging tech.
RiverPark Large Growth Fund stated the following regarding Apple Inc. (NASDAQ:AAPL) in its fourth quarter 2025 investor letter:
“Apple Inc. (NASDAQ:AAPL): AAPL shares rose in 4Q25 following better-than-feared iPhone 17 sell-through trends and stronger Services momentum. The company reported that early adoption of its on-device AI features exceeded internal expectations, particularly in North America and Europe, where attach rates for Pro models remained elevated. Wearables also returned to growth, helped by new health features and improved battery life. While macro softness in China remained a headwind, investors responded positively to evidence of content and advertising revenue re-acceleration within the Services segment, which delivered double-digit growth.
We continue to view Apple as one of the world’s most resilient and profitable businesses, supported by a massive installed base, ecosystem lock-in, and growing high-margin revenue streams. As Apple Intelligence features proliferate across devices, we expect multi-year upgrades, improved monetization, and expanded recurring revenue. With strong cash generation, ongoing share repurchases, and disciplined capital allocation, Apple remains a compelling long term investment.”
