1. Apple Inc. (NASDAQ:AAPL)
Percentage of holdings in the fund: 7.32%
Number of Hedge Fund Holders: 184
Apple Inc. (NASDAQ:AAPL) is an obvious choice for ESG investors, given its strong commitment to labor rights, environmental responsibility, and ethical business practices across its supply chain. The tech giant has reduced its overall greenhouse gas emissions by over 55% since 2015, marking significant progress toward its ambitious Apple 2030 goal of achieving carbon neutrality across its entire value chain by the decade’s end.
On the business front, Apple Inc. (NASDAQ:AAPL) continues to demonstrate robust financial performance and growth potential, solidifying its leading position in the technology market. For fiscal Q3, the company reported revenue of $85.8 billion, a 5% increase year-over-year, surpassing analyst expectations of $84.5 billion. Earnings per share also rose by 11% to $1.40, exceeding the anticipated $1.35.
On August 2, Goldman Sachs raised its price target for Apple Inc. (NASDAQ:AAPL) from $265 to $275 while maintaining a Buy rating. The firm highlighted Apple’s strong performance in the iPhone segment and sustained momentum in its services business. Goldman Sachs anticipates a significant multi-year iPhone replacement cycle, bolstering its confidence in Apple’s future growth.
On the other hand, MoffettNathanson initiated coverage of Apple Inc. (NASDAQ:AAPL) with a Neutral rating and a $211 price target. Although the firm acknowledged Apple’s strong AI strategy, the analysts also noted that the market has already priced in these developments. MoffettNathanson emphasized that while Apple Inc. (NASDAQ:AAPL) is well-positioned to lead in AI, its advantage lies in the trust of over one billion users, particularly concerning personal data like contacts and emails, which Apple Inc. (NASDAQ:AAPL) keeps securely under its control.
Polen Focus Growth Strategy stated the following regarding Apple Inc. (NASDAQ:AAPL) in its Q2 2024 investor letter:
“The largest relative detractors in the quarter were NVIDIA, Apple Inc. (NASDAQ:AAPL), and Salesforce. In a reversal from some of the concerns driving the stock down in the first quarter, Apple re-emerged as a top performer in the second quarter. The company reported better-than-feared results in its iPhone segment that quelled concerns over weakness in China. Additionally, the company forecast a return to sales growth and announced a $110 billion stock buyback plan, the largest in U.S. history. Later in the period, at its Worldwide Developers Conference, Apple introduced long-awaited new AI features that spurred some optimism around an upgrade cycle for the iPhone and, more generally, the important role Apple may be able to play in the emerging AI landscape. We continue to study Apple closely, which we previously owned the company for many years during its growth phase, to determine if it is poised for another significant revenue and earnings growth period.”
While we acknowledge the potential of AAPL, our conviction lies in the belief that 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 the ones mentioned on our list but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley and Jim Cramer Says NVIDIA ‘Has Become A Wasteland’.
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