Apple Hits All-Time High as $725B AI Spending Binge Drains Rivals' Cash

Apple reached an all-time high as Citigroup highlighted how surging AI capital expenditures are pressuring rivals’ free cash flow. On July 13, Citi raised its Apple price target from $315 to $365 and kept a Buy rating, citing Apple’s momentum in a softening device market, pricing power in premium hardware, and a longer-term Services revenue tailwind tied to an AI strategy that avoids a data-center spending race. Apple’s stock closed at a record level, and the company is on track to generate a record $140 billion in free cash flow with less than $13 billion in capital spending. Meanwhile, research from Epoch AI found that the five largest hyperscalers—Microsoft, Amazon, Alphabet, Meta, and Oracle—are increasing capex about 70% per year as operating cash flow rises about 23%.