Warren Buffett has trimmed more than half of his Apple stake over the past two years, shifting from a position that once comprised over 50% of Berkshire Hathaway’s equity portfolio to just 21%. His broader sell-off, which began in late 2023, reflects a return to Benjamin Graham’s recommended 75/25 stock-to-bond allocation when markets appear expensive. Today, Berkshire holds approximately 57% of its portfolio in cash and equivalents, signaling a cautious stance rather than a specific bearish view on Apple itself.

With Apple trading at roughly 33 times forward earnings, a material re-rating could hinge on a successful AI rollout. The initial Apple Intelligence launch underwhelmed many users, but a sweeping Siri overhaul expected in spring 2026 could shift sentiment. Analysts argue that if Apple delivers a truly personalized, privacy-focused assistant capable of winning users from third-party AI apps, the shares could rerate toward a higher multiple, with targets suggesting upside of around 28%.

In its most recent fiscal quarter, Apple reported year-over-year revenue growth of 8%, driven by a rebound in iPhone shipments and a 15% increase in high-margin services. Management forecasts revenue growth of 10% to 12% for the holiday period, with iPhone sales alone poised to expand at a double-digit pace. The services segment, with a gross margin north of 75%, remains a critical profit driver and underscores the strength of Apple’s ecosystem monetization.

After essentially flat revenue from fiscal 2022 through 2024, Apple appears to be entering a new era of growth. Its vast installed base of active devices and recurring services revenue create a stable foundation, while a potential surge in AI-enabled upgrades could catalyze further expansion. Although the trailing price-to-earnings ratio sits near 37, investors may find the valuation justified by Apple’s brand power, customer loyalty, and the prospect of accelerating growth across hardware and services.