Apple (AAPL) Poised for Major Cash Windfall Thanks to Big Beautiful Bill

Apple Inc. (NASDAQ:AAPL) is one of the AI Stocks Making Waves on Wall Street. On July 30, Morgan Stanley reiterated the stock as “Overweight.”

According to the firm, One Big Beautiful Bill Act (OBBBA) will offer a significant boost to free cash flow (FCF) across the IT hardware sector. It noted that Apple is one of the big beneficiaries of the Big Beautiful bill.

“We estimate the One Big Beautiful Bill Act (OBBBA) can add 12% upside to our IT Hardware coverage FCF in 2025, and 5%, on average, annually, to our coverage over the next 4 years,”

A business executive analyzing their latest financial performance figures, thanks to the company's online cash management services.

Through the bill, companies will be able to immediately deduct R&D and capital investment expenses from U.S. taxes. This will accelerate their tax savings and increase near-term cash flow.

“We estimate that over the next 4 years, the [One Big Beautiful Bill] will add a cumulative $20.3B of upside to our AAPL [free-cash flow] forecast, all else equal, which equates to an average annual FCF tailwind of 4%.”

The firm projects the legislation will generate more than $12 billion in incremental cash flow for covered names over the next year, as well as $20 billion cumulatively over four years.

“This benefit is mostly about timing, as it pulls forward future tax savings rather than changing the long-term cash flow picture,” the analysts said.

Apple is a technology company known for its consumer electronics, software, and services.

While we acknowledge the potential of AAPL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 10 Must-Watch AI Stocks on Wall Street and 10 AI Stocks Making Waves on Wall Street

Disclosure: None.