Apple is increasingly attracting investors seeking a haven from higher-risk artificial intelligence stocks, according to a recent note from Bernstein. The analysis comes as Jensen Huang's departure from Nvidia rattles the AI trade, adding to recent investor anxiety about tech stocks in general. Bernstein analysts led by Mark Newman said in a report on Thursday that, with little correlation to tech peers, Apple now trades in line with high-quality consumer stocks.

Apple has had a strong run even after John Ternus succeeded Tim Cook as CEO, despite facing rising memory costs and narrower margins. Unlike other 'Magnificent Seven' companies that are spending hundreds of billions of dollars on capital expenditures, the iPhone maker has earned safe-haven status, with capex at less than 2% of revenue. As a result, shares of the largest company in the U.S. by market value have benefited from the recent AI sell-off, pushing its price-to-earnings multiple to all-time highs.S2

Bernstein reiterated an outperform rating on Apple and a $380 price target, implying about 7% upside from Thursday's close. Newman said the market has long decoupled Apple from the rest of the mega-cap tech names and reclassified it as a consumer compounder. Apple's valuation stands at 37 times its expected 2027 earnings per share, roughly twice the market's forward earnings multiple. Among companies with a market capitalization above $200 billion and consensus future EPS growth below 15%, Costco trades at 46 times forward earnings, Walmart at 39 times, Apple at 37 times and General Electric at 36 times.S2

Bernstein projects Apple's annual revenue growth through 2029 at roughly 9%, faster than Costco's 7% and Walmart's 5%. Apple also leads on free cash flow generation and shareholder returns, with an estimated 3.1% free cash flow yield and buybacks equal to 3% of total market capitalization in 2027 and 3.2% in 2028. Newman said Apple shows many consumer staples traits, including predictable replacement demand, pricing power and steady cash returns, making its earnings more dependable. Bernstein's smartphone survey found 90% of iPhone users stayed with the brand when replacing their device, similar to Costco's worldwide membership renewal rate of about 90%.S2