--- title: "Apple Stock (AAPL) Could Get a New R&D and AI Tech Budget as New CEO John Ternus Takes Helm on Sept 1" type: "News" locale: "en" url: "https://longbridge.com/en/news/296601334.md" description: "Incoming Apple CEO John Ternus, taking office on Sept 1, 2026, may shift strategy by expanding R&D and AI budgets. Dropping the net cash neutral goal allows more capital for innovation, with Q3 research spending already up 32% to $11.7 billion. Analysts suggest this balances strong cash reserves with competitive AI development. Wall Street maintains a Moderate Buy consensus with an average price target of $338.99, implying 8.9% upside." datetime: "2026-08-21T09:59:21.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/296601334.md) - [en](https://longbridge.com/en/news/296601334.md) - [zh-HK](https://longbridge.com/zh-HK/news/296601334.md) generator: "portal-rs" --- # Apple Stock (AAPL) Could Get a New R&D and AI Tech Budget as New CEO John Ternus Takes Helm on Sept 1 Apple stock (AAPL) is in focus as incoming CEO John Ternus prepares to take over on September 1, 2026, analysts are wondering if an expanded R&D and AI budget will drive his long-term strategy. Ternus succeeds long-time leader Tim Cook, who led Apple since 2011, overseeing a 2,740% total stock return and growing its market cap from $346.4 billion to $4.63 trillion. 5-star Bank of America analyst Wamsi Mohan notes that Cook built Apple into a huge firm known for loyal buyers and strong cash flow. While Apple's core business model will likely stay firm, Ternus may change the firm's spending strategy to speed up its artificial intelligence efforts. ### Summer Sale - Claim 70% Off TipRanks - Unlock powerful investing tools with TipRanks Premium to make smarter, more confident investment decisions - Subscribe to TipRanks Smart Investor Newsletter, and discover new investing opportunities with data-backed stock picks A key signal of this shift came when Apple stopped using its net cash neutral goal, a plan set in 2018 to lower net cash through stock buybacks and dividends. Dropping this target creates room for Apple to direct more cash into R&D and bigger corporate deals. ## **Apple Is Already Funneling More Money Into Software** Apple is already putting more money into its software teams. Third-quarter research spending jumped 32% year-over-year to $11.7 billion, pushing total operating expenses up to $19.1 billion. Even with that rise, Apple's capital spending remains far smaller than big tech rivals like Amazon (AMZN), which posted $54 billion in second-quarter spending. Some investors like Apple's careful spending approach because it protects cash reserves. However, analysts point out that Apple needs strong AI features to keep consumers and Wall Street engaged. Opening the cash pool could give Ternus the tools needed to close the gap with AI competitors. Huge cash reserves give Apple room to fund new AI software while keeping its stock buybacks and dividend payouts strong. This balanced approach gives Apple investors steady cash returns and better growth potential as John Ternus steps into the CEO role. ## **Is Apple Still a Good Stock to Buy Now?** Turning to Wall Street, analysts have a Moderate Buy consensus rating on Apple stock (AAPL) based on 16 Buy, 10 Hold, and four Sell ratings assigned in the past three months, as indicated by the graphic below. The average 12-month AAPL price target of $338.99 per share implies 8.9% upside potential. 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