10 AI Stocks Taking Wall Street by Storm

1. Apple Inc. (NASDAQ:AAPL)

Number of Hedge Fund Holders: 158

Apple Inc. (NASDAQ:AAPL) is a technology company that has made its mark in the AI realm with the launch of Apple Intelligence, its personal intelligence system. On December 10, DBS analyst Jim Hin Kwong Au downgraded the rating on Apple to “Hold”, setting a price target of $243.00. Hin Kwong has assigned the hold rating based on Apple’s current market position and future prospects.  Despite the introduction of promising innovations such as the AI-powered iPhone and the Vision Pro XR device, the analyst stated that the recent surge in Apple’s stock price signifies how the advancements are already factored in its valuation, thereby limiting immediate stock gains.

Moreover, Apple’s technological breakthroughs, particularly in semiconductor design, bolsters its competitive edge but comes with its fair share of challenges. The analyst highlighted how delays in the Apple Intelligence launch could hurt consumer sentiment and iPhone sales both. Apple indeed has strong user loyalty and product quality which suggest long-term growth potential, but the current factors call for a cautious short-term outlook.

While we acknowledge the potential of AAPL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than AAPL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

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