Andreessen Horowitz’s Nov. 6 analysis linked Apple’s relative stock strength to lower capital spending and growth in established businesses, while identifying AI-connected firms among factors weighing on Nasdaq returns.
The firm said capital spending at major cloud companies had climbed roughly sixfold to ninefold since 2023. Separately, the four main hyperscalers’ capital spending as a share of sales had roughly doubled or tripled, while Apple’s ratio fell by about one-third. Andreessen Horowitz interpreted Apple’s spending as below levels preceding the AI investment surge and said markets rewarded the company’s relative restraint.
Apple alone among the Magnificent Seven had a higher year-to-date return than the Nasdaq when Andreessen Horowitz compiled its figures earlier in the week. In its review of the prior 30 days, the firm found that companies tied to AI and its supply chain were among the factors weighing on the index.
The group it identified included hyperscalers, emerging cloud providers and semiconductor companies. Retailers Costco and Walmart were positive contributors, while Tesla also added to returns, though its gains only partly made up for a weak year in its shares, the report said.
Andreessen Horowitz also cited growth in Apple’s established businesses: iPhone revenue growth had rebounded sharply, and Services grew by about 13% year over year. The firm said concerns that higher component costs would raise iPhone prices and undermine demand had not yet shown up in the market. Growth in Mac, iPad and wearables, however, had slowed to single digits.
Apple’s investment profile also includes research and development. Apple’s fiscal 2026 filing showed research and development expense rose 32%; Apple attributed the increase to higher infrastructure spending, including AI investment, and personnel costs, as detailed in EconoTimes’ earlier report on the filing.
Andreessen Horowitz also pointed to the iPad’s changing weight in Apple’s business. The firm said sales peaked three to four years after the device’s 2010 debut, and the iPad represented nearly 20% of Apple’s revenue in 2013. Its share is now below 6%, while growth elsewhere has offset the decline, according to the firm.
