2 Reasons This Warren Buffett Favorite May Soar in 2026

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The reason I say this is Buffett doesn't often invest in this industry, but from time to time, makes an exception. This is the tech industry, and the stock is smartphone giant Apple (NASDAQ: AAPL).Though Buffett, who retired at the end of 2025, progressively reduced his position in the company in recent quarters, it remains the largest holding in the Berkshire Hathaway portfolio. And the investing giant clearly hasn't lost faith in the company, as he praised Apple chief Tim Cook as recently as last May, during the Berkshire Hathaway shareholder meeting.Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »Let's check out two reasons why this Buffett favorite may soar in 2026.Image source: The Motley Fool.In recent years, investors have focused on artificial intelligence (AI) stocks due to the growth potential in the space. But Apple wasn't very high on their buy list, and this is reflected in the stock's performance over the past few years in relation to others.AAPL data by YChartsApple was slower than its tech peers to get in on AI -- it only began launching AI features on its devices about a year and a half ago. So it wasn't necessarily seen as a major AI winner, especially compared to chip designers and cloud services companies.But now, as investors seek out new potential winners and the safety of companies that have proven themselves, they may turn to Apple. And that could help the stock to take off this year.You can count on revenue from Apple's sales of smartphones, Macs, and its other much-sought-after devices. The company has demonstrated the strength of its brand over time, as customers are loyal and eager to get in on the next product update.The next big growth driver, however, may not be a product, but instead, the result of Apple's work over the past several years. The company now has more than 2.5 billion devices active worldwide, and they represent the key to recurring revenue. This is through Apple's services business.Today, when customers buy an iPhone, they generally don't stop there. They will then sign up for extras such as digital entertainment or storage, and this represents additional revenue for Apple that keeps coming in on a regular basis. We've already seen the results of this trend, with Apple reporting record services revenue in recent quarters.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoTrending tickersTSLA Tesla, Inc. 360.52 -20.74 (-5.44%)BTC-USD Bitcoin USD 66,945.42 -1,160.95 (-1.70%)SKYQ Sky Quarry Inc. 5.16 +2.63 (+104.36%)SIDU Sidus Space, Inc. 3.0450 +0.9450 (+45.00%)PLUG Plug Power Inc. 2.4450 +0.1950 (+8.69%)PortfolioSign in to access your portfolioSign inTop gainersAAOI Applied Optoelectronics, Inc. 102.22 +15.87 (+18.38%)RLAY Relay Therapeutics, Inc. 12.57 +1.80 (+16.71%)VSAT Viasat, Inc. 52.59 +7.36 (+16.27%)SBAC SBA Communications Corporation 198.57 +27.01 (+15.75%)LUNR Intuitive Machines, Inc. 23.23 +2.99 (+14.77%)Top losersRGC Regencell Bioscience Holdings Limited 30.07 -3.65 (-10.82%)KNF Knife River Corporation 74.52 -7.59 (-9.24%)PBH Prestige Consumer Healthcare Inc. 52.42 -5.26 (-9.12%)WIX Wix.com Ltd. 83.17 -7.33 (-8.10%)ENPH Enphase Energy, Inc. 35.31 -2.97 (-7.76%)Most activeNVDA NVIDIA Corporation 177.10 +1.35 (+0.77%)INTC Intel Corporation 50.19 +2.16 (+4.50%)NOK Nokia Oyj 8.77 +0.49 (+5.99%)PLUG Plug Power Inc. 2.4425 +0.1925 (+8.56%)TSLA Tesla, Inc. 360.27 -20.99 (-5.51%)Top economic eventsEarnings eventsMy earnings eventsEarnings events