Apple Inc.
The chart, published by A16Z, captures the gap visually.
Since 2014, Apple's quarterly capex line has barely moved. Every other Big Tech line has turned parabolic.
The Rest Of The Mag 7 Is Going All In
Amazon.com Inc.
Microsoft Corp.
Most of the increased spend is going toward AI data centers, chips, and infrastructure, and a good portion of that money flows directly to Nvidia
Apple's full-year spend was $12.72 billion. That is less than Amazon plans to spend in a single quarter.
The Market Is Starting To Question The Spending
Bigger is not necessarily better. When Amazon announced its $200 billion capex guidance, its stock dropped about 8% in the following session.
Alphabet's similarly aggressive plans sent its stock down roughly 6%.
Investors are getting nervous about whether these companies will ever see a return on the unprecedented investment.
CEO Tim Cook has defended Apples approach directly.
"From a CapEx point of view, we've always taken a very prudent and deliberate approach to our expenditure and we continue to leverage a hybrid model, which I think continues to serve us well," he forecasted on Apple's Q1 2025 earnings call.
Apple is relying on on-device processing and "private cloud compute" to avoid the massive server costs burdening its rivals.
What Polymarket Says
Prediction markets may offer the clearest read yet on who investors actually think wins this bet long-term, and they appear skeptical Apple's restraint pays off over the longer arc.
On Polymarket's "Largest Company End Of December 2026?" market, which has over $626,000 in volume, Nvidia leads at 44 cents, Alphabet sits at 33 cents, and Apple is at just 14 cents.
Despite persistent speculation about his successor, traders on Polymarket give Tim Cook a 69% chance of remaining CEO through 2027, suggesting a reversal in strategy is unlikely.
The crowd is pricing in that the companies spending most aggressively on AI infrastructure are the ones most likely to be running the world's highest valuation by year end.
Apple's "nah, we're good" approach to capex may be the right call for free cash flow.
Whether it's the right call for competitive positioning in AI remains to be seen.
