Apple AAPL is entering a pivotal phase as CEO Tim Cook prepares to step down on Sept. 1, ending a 15-year tenure. He will be succeeded by longtime hardware chief John Ternus, marking only the second leadership change since Steve Jobs departed in 2011.
Despite building a $4 trillion valuation, Apple now faces mounting pressure to define a clearer strategy in artificial intelligence (AI) — a space where it lags key rivals in the Big Tech segment.
Apple shares gained about 0.6% over the past week (as of April 21, 2026). Shares advanced about 6.9% over the past month.
Lagging in AI Race
While competitors like Microsoft, Alphabet, Amazon and Meta are investing aggressively in AI infrastructure, Apple has taken a more measured approach.
There are continued concerns about Apple's progress in artificial intelligence, as some AI features have been delayed, and investors are seeking a solid AI roadmap from the company.
Instead of building its own foundational model, Apple is relying on partnerships, including integrating Google Gemini and ChatGPT into its ecosystem (as quoted on CNBC). Apple is now expected to unveil a significantly revamped, AI-powered Siri at WWDC in June 2026.
Hardware-Centric AI Strategy Likely in Ternus-Era?
The company has been embedding AI-capable silicon into its devices since 2017 and expects more AI workloads to run directly on-device in the coming years, as quoted on CNBC. Leveraging its custom silicon will allow Apple to deliver faster and energy-efficient AI experiences.
This strategy aligns with Ternus’ background in hardware and suggests Apple may prioritize tightly integrated devices, not just software, per Timothy Hubbard, assistant professor of management at the University of Notre Dame, as quoted in the above-mentioned CNBC article.
In October 2025, Apple unveiled the M5, a next-generation system-on-a-chip, marking a major leap forward in AI performance for its silicon lineup. It is designed to power devices like the MacBook Pro, iPad Pro, and Apple Vision Pro, with a strong focus on artificial intelligence and performance efficiency.
A foldable iPhone is also in development. AI-enabled devices are likely to be Apple’s focus in the coming days. ChatGPT and Anthropic’s Claude are currently the two most popular free iOS apps. AI will also play a critical role in Apple’s services segment, which includes offerings like iCloud, Apple TV+ and Apple Pay.
The company earns a share of revenue when users subscribe to premium services like ChatGPT, Claude, and other generative AI offerings through Apple’s platform, as mentioned in CNBC.
Challenges Ahead
Apple faces some headwinds, including supply chain complications related to geopolitical tensions and rising costs for memory components driven by AI demand (read: Tap the Super-Hot Memory Market With These ETFs).
Apple-Heavy ETFs in Focus
We believe that Apple needs meaningful AI advancements, be it organically or inorganically. As John Ternus prepares to take the helm, Apple stands at a crossroads. The company’s future growth will likely depend on its ability to integrate AI more deeply into its products and services.
Against this backdrop, investors can play Apple in a basket approach to minimize company-specific concentration risks. This ETF approach will also allow investors to ride any potential rally in Apple shares.
Global X PureCap MSCI Information Technology ETF GXPT – Apple weight 20.0%
Fidelity MSCI Information Technology Index ETF FTEC – Apple weight 15.84%
Vanguard Information Technology ETF VGT – Apple weight 15.8%
iShares U.S. Technology ETF IYW – Apple weight 15.5%
Boost Your Portfolio with Our Top ETF Insights
Zacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.
Don’t miss out on this valuable resource. It’s free!
Get it now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL): Free Stock Analysis Report
Fidelity MSCI Information Technology Index ETF (FTEC): ETF Research Reports
iShares U.S. Technology ETF (IYW): ETF Research Reports
Vanguard Information Technology Index Fund ETF Shares (VGT): ETF Research Reports
Global X PureCap MSCI Information Technology ETF (GXPT): ETF Research Reports
This article originally published on Zacks Investment Research (zacks.com).