Apple reaches $5 trillion market cap with its measured AI strategy

Apple briefly reached a $5 trillion market capitalization, becoming the second company in history to achieve this milestone. The company's more conservative AI spending strategy, involving renting computing capacity rather than massive data center construction, is now seen as a strength. This contrasts with competitors facing increased debt and negative cash flow due to heavy AI investments. Apple's approach allows for significant free cash flow, contributing to its stock performance. Competitors like Alphabet, Amazon, and Microsoft are expected to report further spending increases, potentially impacting their stock values.