10 Best Stocks to Invest in for the Next 10 Years

4. Apple Inc. (NASDAQ:AAPL)

Number of Hedge Fund Holders: 166

Apple Inc. (NASDAQ:AAPL)’s stock received a “Buy” rating from Wedbush’s analyst Daniel Ives, thanks to its deal with Alibaba, which is expected to be a critical driver for the company’s growth in China. The analyst has kept the price target steady at $325. Alibaba Group Chairman has confirmed that the company was partnering with the US tech giant to roll out AI for iPhones sold in China. CNBC reported that the announcement can provide clarity on Apple Inc. (NASDAQ:AAPL)’s AI strategy in China, supporting it in tackling increased competition as the iPhone’s market share continues to erode in the world’s leading smartphone market.

While Apple Inc. (NASDAQ:AAPL) has lost market share to Huawei over the previous year, Wedbush expects that the company’s AI-powered features in the upcoming iPhones will support the company regain its position in the market. Overall, the analyst believes that Apple Inc. (NASDAQ:AAPL)’s collaboration with Alibaba is expected to play an important role in its expansion in China, mainly in advancing AI initiatives. The company’s partnership with Alibaba is expected to enhance its AI capabilities, strengthen its competitive position in China, and ensure regulatory compliance with favourable implications for its global operations over the upcoming decade.

Tsai Capital, an investment management company, released the Q4 investor letter. Here is what the fund said:

“We initiated our investment in Apple Inc. (NASDAQ:AAPL) in 2016 and elevated it to a core holding in 2018, the same year the company introduced its redesigned 13-inch and 15-inch MacBook Pro models. Under Tim Cook’s visionary leadership, Apple has consistently redefined innovation in hardware and software.

The September 2024 launch of the iPhone 16, with its groundbreaking AI capabilities, including enhanced image generation tools, marks another inflection point. We believe this transformative device is the foundation for an AI-driven supercycle and could entice approximately 100 million consumers to upgrade, reinforcing Apple’s leadership in the industry.

Today, Apple’s ecosystem spans over two billion active devices, supported by a rapidly-growing base of subscription services. This strategy has helped to turbocharge customer engagement and spending. In the most recent fiscal year, which ended in September 2024, Apple’s high-margin services division accounted for 39.3% of total gross profits, up from 32.8% just two years ago.

Apple’s financial footing remains exceptional, with approximately $50 billion in net cash and marketable securities. Looking ahead, we expect earnings-per-share growth to outpace revenue growth, driven by margin expansion and continued share buybacks.”