Apple Open to M&A to Accelerate AI Plans, CFO Says Spending Will Rise Substantially

Apple CEO Tim Cook says the company is open to M&A that accelerates its AI plans, potentially involving larger acquisitions or building more data centers. This shift comes as Apple falls behind Microsoft and Google in AI development. Analysts have a Moderate Buy consensus rating on AAPL stock with a $230.97 average price target, implying 13.7% upside potential.

Apple CEO Tim Cook has indicated that the company is open to acquiring larger third-party companies to accelerate its AI roadmap. This move comes as Apple seeks to catch up to tech giants like Microsoft and Google in AI development. Cook made these remarks during Apple's earnings call, where he confirmed that the company is increasing spending and reorganizing teams to focus on AI initiatives [1].

Cook stated that Apple is "very open to M&A that accelerates our roadmap" and is not limited to small companies. He mentioned that while Apple has acquired around seven companies so far this year, not all of them were focused on AI. The company is also significantly growing its AI investment, with CapEx for the June quarter reaching $3.46 billion, up from $2.15 billion in the year-ago period [2].

Analysts have a Moderate Buy consensus rating on AAPL stock with an average price target of $230.97, implying a 13.7% upside potential. This suggests that investors are optimistic about Apple's AI strategy and its potential to drive future growth [2].

Apple's renewed focus on AI comes as it faces growing pressure from Wall Street to catch up to its Silicon Valley peers, who have dedicated tens of billions of dollars to AI technology. While Apple's CapEx spending is modest compared to other major tech companies, the company is making strategic investments to stay competitive in the AI space [1].

Apple has historically made high-profile acquisitions to expand its market presence and strengthen its vertical integration. Notable acquisitions include Beats Electronics in 2014 and Intel's smartphone modem business in 2019. However, Apple's AI strategy may require larger acquisitions to keep pace with its competitors [1].

In addition to M&A, Apple is also investing in its own AI capabilities by reorganizing teams and developing new features that leverage machine learning and related technologies across its hardware and software ecosystem. The company's AI strategy is focused on embedding AI across its devices and platforms to make advanced technologies accessible to everyone [1].

References:
[1] https://www.tomshardware.com/tech-industry/artificial-intelligence/apples-tim-cook-very-open-to-m-and-a-that-accelerates-our-road-map-for-ai-company-increasing-spending-on-ai-initiatives-reorganizing-teams-to-address-expansion
[2] https://www.cnbc.com/2025/07/31/tim-cook-apple-ai-acquisitions.html