10 Best Computer Hardware Stocks to Buy According to Billionaires

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1. Apple Inc. (NASDAQ:AAPL)

Number of Billionaire Investors: 21

Billionaire Holdings: $101.7 Billion

Number of Hedge Fund Holders: 166

Apple Inc. (NASDAQ:AAPL) designs, manufactures, and markets innovative products, including the iPhone, iPad, Mac computers, Apple Watch, and Apple TV. The company also offers a range of software and services, such as the iOS and macOS operating systems, iCloud, advertising, payment services, Apple Music, and the App Store.

Apple Inc. (NASDAQ:AAPL) shares have faced pressure following reports of delays in introducing key features to its Siri virtual assistant. According to Bloomberg, the delays stem from quality concerns, with the technology reportedly failing to function correctly up to 80% of the time. These features were initially intended to roll out in the iOS 18.4 update scheduled for April, having been marketed since June 2024. Although the company aims to resolve the issues by 2026, the delay has sparked concerns, reinforcing the perception that the company lags behind its competitors in the field of artificial intelligence. The stock has dropped nearly 15% year-to-date.

Morgan Stanley analyst Erik Woodring has highlighted that the delay could negatively impact iPhone upgrade rates over the coming year. As a result, he has adjusted his iPhone shipment projections for 2025 and 2026, reducing them by 1%-5%. While other features are expected to contribute to unit growth, the analyst expressed skepticism regarding the impact of AI features. Without a breakthrough AI application available before the iPhone 17 launch, he does not foresee AI-driven features significantly boosting upgrade rates as previously anticipated. Consequently, he has revised his price target downward from $275 to $252, while maintaining an Overweight rating. This price target is close to the 1-year median consensus target of $255, which still suggests a robust 20% upside potential.

While we acknowledge the potential of AAPL to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. 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: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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