Jim Cramer says Apple is well-positioned even without its own AI tech

CNBC’s Jim Cramer told investors on Wednesday why he thinks Apple is set for success in the Big Tech realm even without its own advanced artificial intelligence technology, saying peers like Google will shell out for prime access to the iPhone maker’s enormous user base.

“Yesterday, Apple had no cards. Today they have all of the cards,” he said. “Turns out Apple always had an AI strategy: pay to play. You pay them, not they pay you.”

Wall Street has been pressuring Apple to reveal a strong AI strategy, worried it’s falling behind as other tech companies spend billions on data centers and Nvidia chips to craft AI products. The company’s stock has lagged behind other members of the Magnificent Seven so far this year. It’s the second-worst performer of the bunch, ahead of Tesla.

But according to Cramer, Apple’s luck turned on Tuesday after a federal judge said Google would not have to divest its Chrome browser — a measure proposed by the Department of Justice after a court ruled in August 2024 the company held an illegal monopoly in its core search business. The recent decision means that Google can still pay Apple to be the default search engine on the iPhone. By close, Apple shares were up 3.81%.

Apple no longer has to worry about making a deal worth billions with a hyperscaler or AI company like Perplexity, Cramer said. Instead, big chat bot names will now have to compete for Apple’s spotlight, he continued, as the company boasts more than 1 billion active iPhone users.

Eventually, one AI platform will rise in popularity above the others, Cramer said, and he suggested it could be Gemini given Google’s preexisting relationship with Apple.

“There isn’t a clear winner right now in the chatbot space, but if you can pay Apple a fortune to make yours the default, someone’s going to write that check,” Cramer said.

Apple did not immediately respond to request for comment.

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Disclaimer The CNBC Investing Club Charitable Trust owns shares of Apple.