Apple and Google

AN ARTIFICIAL INTELLIGENCE – POWERED INVESTMENT DUET

This month Apple announced a multi-year partnership with Google. Google’s Gemini AI models will be integrated into Apple Intelligence, including the much-anticipated Siri upgrade.

Apple’s AI capabilities will be rapidly and greatly advanced and Google benefits by placing its AI at the core of Apple’s global device base. Apple Intelligence is designed to run on-device where possible and use Private Cloud Compute when server processing is needed.

Apple’s growth has been steady. Revenue grew by 6.43% in fiscal 2025 and net income by an impressive 19.5%.

Google has stronger growth. Revenue increased by approximately 13% (trailing twelve months to late 2025) and net income growth has been notably strong in recent quarters.

The agreement with Google reflects Apple’s cautious approach to AI and is a significant endorsement and validation of Google’s AI leadership and expands Gemini’s footprint on iOS devices.

Importantly the partnership preserves Apple’s privacy model by running AI on Private Cloud Compute and on device whenever possible.

Google offers faster growth and therefore potentially greater capital appreciation. The company has varied revenue streams and a still under monetized YouTube.
See Alphabet’s segment disclosures and management commentary in its earnings materials.

Apple is more defensive but services and hardware sales are expected to show strong growth in 2026 due to the new iPhone upgrade cycle and the anticipated improvement in Siri.
The company has avoided the AI arms race and is highly cash generative.

For investors this partnership improves Apple’s competitive positioning while vindicating Google’s AI monetization pathway.

The return profiles for both stocks are attractive, with Google offering higher growth potential and Apple providing stability and resilience. It is wise to allocate based on risk tolerance and time horizon: growth-orientated investors may overweight Google, whereas long-term diversified portfolios can benefit from holding both. Set risk management rules carefully by considering buying levels with portfolio allocation quantities and appropriate stop loss levels.

AI used William Meyer to write this article.

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