Apple (AAPL) stock rose 3.5% on Friday, reaching $332.97 and trading close to its 52-week high of $334.99, as investors focused on the company’s lower-cost approach to artificial intelligence.

The iPhone maker has taken a different path from some major technology rivals that are preparing large AI infrastructure budgets. Amazon and Alphabet are each planning to spend about $200 billion on AI infrastructure in 2026, while Apple has emphasized partnerships rather than comparable levels of direct spending.

Apple has partnered with OpenAI, Nvidia, and Alphabet to support AI features across its devices. In China, the company is working with Alibaba and Baidu to provide AI-powered services for that market. The approach is designed to give customers access to advanced AI capabilities while limiting the company’s spending requirements.

That strategy is notable because generative AI services can require large spending on data centers, chips, and cloud capacity. Apple’s model leans on outside AI providers while keeping its hardware, operating systems, and services ecosystem at the center of the customer experience.

Concerns have also increased that the wider AI investment race could be contributing to a bubble. Against that backdrop, Apple’s more restrained spending strategy has drawn attention from investors.

AAPL opened Friday at $333.02 and traded between $321.63 and $334.33 during the session. The company’s market capitalization was estimated at approximately $4.7 trillion to $4.89 trillion, depending on the measure used.

Quarterly Results Exceed Estimates

Apple’s latest quarterly results also came in ahead of Wall Street expectations. The company reported earnings per share of $2.01 for Q3, beating the consensus estimate of $1.95 by $0.06.

Revenue was $111.18 billion, above expectations of $109.46 billion. The figure represented a 16.6% increase from the same period a year earlier.

Apple reported a net margin of 27.15%, while return on equity reached 146.69%. Analysts now expect full-year earnings per share of $8.76.

The company also increased its quarterly dividend to $0.27 per share from $0.26. The annualized yield is 0.3%, with a payout ratio of 13.06%.

Analyst Ratings and Institutional Holdings

Bank of America has a Buy rating on AAPL and a $380 price target. Monness Crespi & Hardt recently lifted its target from $315 to $335, also maintaining a Buy rating. Rosenblatt has a Neutral rating and a $276 target.

The current consensus rating is “Moderate Buy,” with an average price target of $327.40. Among analysts covering the stock, 23 rate it Buy, nine rate it Hold, and two rate it Sell.

Baird also reiterated an Outperform rating this week and raised its price target, adding to a series of positive analyst actions ahead of earnings season.

Among institutional investors, Kornitzer Capital Management reduced its position by 1.5% in Q1, selling 6,492 shares from its holding of 421,039 shares. Apple still represents 2.3% of the firm’s portfolio.

Ford announced this week that it will embed Apple Maps directly into upcoming electric vehicles, extending Apple’s software ecosystem further into the automotive market. For Apple, software integrations beyond the iPhone remain one way to keep users connected to its services across more daily use cases.

Institutional investors and hedge funds collectively own 67.73% of AAPL stock. The stock’s 50-day moving average is $306.62, while its 200-day moving average is $279.01.