10 Stocks Hedge Funds Are Crazy About Right Now

8. Apple Inc. (NASDAQ:AAPL)

Number of Hedge Fund Investors In Q1 2024: 150

One of the largest technology companies in the world, Apple Inc. (NASDAQ:AAPL) needs no introduction. However, its place at the top of the tech market value chain has been in a constant state of flux in 2024, which also shows the changing trends on Wall Street and in the technology industry. Apple Inc. (NASDAQ:AAPL) is one of the biggest companies in terms of revenue, but its shares remained lackluster in 2024 before a slew of AI announcements at its WWDC conference. Before the AI announcements, the shares had gained a mere 4% in the year, but since then, the stock is up by more than 8%. While AI might have injected fresh life into Apple Inc. (NASDAQ:AAPL)’s shares, another key determinant of its future is iPhone sales performance.

The iPhone is Apple Inc. (NASDAQ:AAPL)’s largest product in terms of revenue, and the shares have been lackluster as investors have been worried about slowing growth in China. These concerns were also on the mind of Aristotle Atlantic Partners, whose Q1 2024 investor letter (shared before WWDC) outlined:

Apple contributed to portfolio performance in the first quarter due to the strategy’s underweight relative to the benchmark. Investors continue to be concerned about weak handset sales globally, as well as declining market share and competitive dynamics in the Chinese market, as Huawei has returned to the market with a more competitive premium-priced handset. Apple has yet to demonstrate a competitive AI product, which could present further competitive headwinds for the company.