3 Reasons This Warren Buffett Favorite AI Stock Could Soar Over the Next 10 Years

Calling Apple (NASDAQ: AAPL) an artificial quality banal whitethorn person sounded similar a agelong not agelong ago. But I deliberation that presumption is getting outdated.

Yes, Apple is not spending monolithic sums similar Amazon, Alphabet, oregon Meta Platforms to physique retired important AI infrastructure. And yes, it is taking a much measured attack than galore investors expected. But that whitethorn really beryllium portion of what makes the banal compelling today.

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Additionally, it whitethorn beryllium the iPhone maker's beardown caller fiscal results, and the company's measured attack toward the AI boom, that assistance explicate wherefore famed capitalist Warren Buffett has remained truthful constructive connected the company.

Apple is inactive Berkshire Hathaway's (NYSE: BRKA)(NYSE: BRKB) largest disclosed equity holding, with a marketplace worth of astir $62 cardinal astatine the extremity of 2025 -- up of American Express astatine astir $56 billion. And the Oracle of Omaha precocious said Berkshire trimmed its Apple involvement excessively soon and could bargain adjacent much if the terms were debased enough. That is not a trivial endorsement, fixed that it's already the company's biggest holding -- and by acold its biggest tech holding with ties to artificial quality (AI).

Here's a person look astatine 3 of the apical reasons I deliberation the biggest equity concern Warren near Berkshire with erstwhile helium stepped down from his CEO relation astatine the extremity of past twelvemonth is simply a large bargain today.

Apple's archetypal 4th of fiscal 2026 (a play that ended connected Dec. 27, 2025) showed an inflecting business. Revenue roseate 16% twelvemonth implicit twelvemonth to $143.8 billion, and iPhone gross surged 23%. That was a crisp measurement up from Apple's fiscal 4th fourth of 2025, erstwhile gross roseate 8%.

Additionally, absorption said it expects fiscal second-quarter gross to emergence 13% to 16% twelvemonth implicit year, contempt being proviso constrained during the period, suggesting the stronger top-line inclination is continuing.

Even more, the tech giant's net per stock successful fiscal Q1 roseate 19% twelvemonth implicit twelvemonth to $2.84, outpacing its 16% gross growth, highlighting Apple's awesome operating leverage.

Bolstering its profitability is its high-margin services revenue, which reached a grounds $30 cardinal successful fiscal Q1, up 14% twelvemonth implicit year. This conception boasts a gross nett borderline that is doubly arsenic precocious arsenic its hardware sales, making it important to the semipermanent bull case. With implicit 2.5 cardinal progressive devices, Apple has an engaged idiosyncratic basal that it monetizes done a wide scope of services, including its ain offerings specified arsenic Apple Pay, Apple TV, and AppleCare, arsenic good arsenic the fees it charges third-party apps. And large upgrade cycles, similar the existent 1 for iPhone with the iPhone 17 family, tin supply a large catalyst for services.