Apple (AAPL) is the only 'Magnificent Seven' stock still outperforming the S&P 500 and Nasdaq this year after last week's sell-off, up 26.8% year-to-date, and it overtook Nvidia as the world's most valuable company on Oct. 30. The article argues Apple's thesis does not depend on heavy AI capex, as it generated $31.9 billion in trailing 12-month free cash flow, while Amazon, Alphabet and Meta Platforms have turned free cash flow negative as their AI spending grows. AI is seen as an add-on to Apple's ecosystem and products rather than the main driver. Apple trades at 39.5 times earnings and 36.1 times forward earnings, well above its 10-year median P/E of 27.6, though the author judges the premium digestible for investors who see Apple as a recession-resistant hybrid, since Walmart (42.8x) and Costco (44.4x) carry even higher forward P/Es.
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