10 Best Stocks to Buy According to Billionaire D.E. Shaw

2. Apple Inc. (NASDAQ:AAPL)

D.E. Shaw & Co’s Stake Value: $2 Billion

Number of Hedge Fund Holders: 158

Apple Inc. (NASDAQ:AAPL) is a technology company that designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories. It is one of the best-performing stocks in the D. E. Shaw portfolio, going by the 37% year-to-date gain. The strong performance comes from investors rallying behind the company’s innovative product lineup and strong financial performance that affirms underlying growth.

Similarly, it is one of the best stocks to buy, according to billionaire D.E. Shaw, given the investments it is making in AI. Apple Inc. (NASDAQ:AAPL) is investing in Apple Intelligence, an AI-driven initiative that is expected to bolster the iPhone product line. While iPhone sales have appeared subdued in recent years, the integration of AI features is one factor expected to give people a reason to upgrade, strengthening Apple’s revenue base.

Consequently, iPhone shipments are projected to grow 12% year-over-year to 258 million units in fiscal 2026. The growth would be propelled by features like upgraded Siri, AI image tools, and ChatGPT integration. While the hardware business has been a key growth driver over the years, the service segment also affirms Apple Inc.’s (NASDAQ:AAPL) long-term prospects. The segment is projected to achieve a double-digit growth rate driven by strong pricing power, expanding adoption and new offerings

The introduction of AI services is projected to contribute between $7 and $14 billion in incremental services revenue. Likewise, the expectation is high that Apple Inc.’s (NASDAQ:AAPL) gross margin will improve next year owing to cost efficiencies and faster-growing service revenue, allowing the company to generate more shareholder value.