Why is Apple the perceived Safe Haven in tech? Sam Boughedda Thu, November 12, 2026 at 8:59 AM EST 2 min read AAPL +0.54% Trade Apple on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
Investing.com -- Bernstein stated in a note on Thursday that Apple (NASDAQ: AAPL) has become a safe haven for investors fleeing riskier AI stocks, and it argues that the iPhone maker's record-high valuation is justified.
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The firm reiterated its Outperform rating and $380 price target on Apple shares.
Analyst Mark Newman noted that Apple spends just 2% of revenue on capital expenditures. It has partnered with Google for its AI models, many of which run directly on devices rather than on expensive AI servers.
As a result, Apple is protected from both a pullback in data center spending and the shrinking free cash flow that hyperscalers are experiencing.
"Furthermore, Apple could stand to benefit if/when the AI bubble actually bursts (e.g. from potentially cheap acquisition targets)," Newman wrote.
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That status has pushed Apple's valuation to about 37 times 2027 consensus earnings, an all-time high.
Among large U.S. companies with expected earnings growth below 15%, only Apple, Costco, Walmart and GE trade above 30 times forward earnings.
Bernstein said Apple now trades in line with high-quality consumer stocks rather than tech peers. At 37 times, it looks cheaper than Costco and Walmart despite stronger revenue growth, cash generation and shareholder returns.
Newman also compared Apple's roughly 90% loyalty among iPhone users upgrading every four years with Costco's 90% annual membership renewal rate.
"Is AAPL's multiple outrageous? Considering its customer loyalty, earnings durability, growth, FCF generation and shareholder returns, we don't think so," the analyst said. "Our reverse DCF implies a terminal growth rate of 4%, which appears reasonable."
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