It’s getting a whole lot harder to be a tech investor, especially if you’re less exposed to some other sectors that have recently benefited from what appears to be a growth-to-value rotation. Of course, if you’re heavy in software stocks, many of which stand to be impacted by the rise of AI-native applications, you may feel like abandoning tech and even the mega-cap CapEx-heavy innovators that are leading the pack in this multi-year rise to achieve AI dominance.
Whether you’re going against the grain with some of those SaaS names amid the wreckage or you’re doubling down on the AI winners, which seemed to have lost their winning ways, at least as of late, it feels like a lose-lose proposition of sorts is unfolding for the tech sector.
Of course, the S&P 500 and TSX Index are less likely to wobble amid the turbulence making its way through tech, so it seems wise to diversify away from tech rather than continuing to buy the dips in a corner of the market that could stay unloved for a while longer.
While the rotation to non-tech and non-AI stocks seems like the most obvious move to make for 2026, I’d argue that putting one’s contrarian hat on could be a smart idea as well, assuming you can handle continued volatility and perhaps more underperformance spanning the rest of the year, if not a bit longer. At the end of the day, AI needs some sort of “killer” app or proof that productivity gains are already here (or are coming shortly) to move past “Go,” so to speak, and continue higher.
In this piece, we’ll look at one solid tech stock worth picking up as volatility stays higher for tech, even as the SaaSpocalypse begins to show signs of bottoming out.
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Apple
First up, Apple (NASDAQ:AAPL) looks like a misunderstood tech titan to pick up now. Most people view the firm as lagging in AI, but, as it turned out, that wasn’t a bad thing amid the CapEx ramp seen across big tech.
While Apple might be one of the more insulated Mag Seven stocks from the AI sell-off (I don’t think it’s a full bubble burst), I see the company as ready to enjoy the profits to be had as agentic technology goes mainstream without having to pay that high CapEx price of admission.
Partnering with a capable AI leader seems like a better way to go than a “spend first, ask questions later” kind of approach — one that might lead to severe overinvestment and a higher risk of weak ROIs.
Apple certainly does “think different” when it comes to placing bets, making deliberate high-ROI bets instead of following the crowd. And if the AI seasons turn to winter for the rest of 2026, my guess is that Apple might be the tech stock to stick with.
With new products dropping this week, including the low-cost iPhone 17e as well as the more affordable, but still capable iPad Air, I think Apple has what it takes to resonate with cost-conscious consumers. In this economy, perhaps consumers can have capable tech without having to pay a hefty price tag.
Given the inflation on components, like RAM and storage, it’s refreshing to have Apple drop some budget options, which, I think, could prove very popular, especially if Apple’s new AI features hit the spot this year.
