12 Best Tech Stocks to Buy For Long-Term Investment

8. Apple Inc. (NASDAQ:AAPL)

Number of Hedge Fund Holders: 166

Apple Inc. (NASDAQ:AAPL) designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories. Its popular products include the iPhone, Mac, and iPad lines. It’s also known for its AirPods, Apple TV, Apple Watch, Beats products, and HomePod. The company provides AppleCare support and cloud services; and operates platforms like the App Store.

In the December quarter, the company’s Services segment made record revenue of $26.3 billion, which marked a 14% year-over-year increase. The company generated around $100 billion in services revenue in the past year. This growth was driven by an installed base of active devices which reached a record of more than 2.35 billion. The company has also seen all-time highs in transacting and paid accounts because of improved customer engagement. Notably, paid subscriptions have exceeded 1 billion.

The offerings in this segment include a range of categories, such as entertainment, productivity, and financial services. Apple TV+ is one instance, which attracts viewers through its original content. Another example includes the Find My services, which can help track luggage among other things. On March 25, UBS affirmed a Neutral rating on the company with a $236 price target.

The stock has been facing pressure due to the lack of an AI-driven iPhone upgrade cycle. However, Columbia Seligman Global Technology Fund is optimistic about the company due to iPhone 17’s AI potential. It stated the following regarding Apple Inc. (NASDAQ:AAPL) in its Q4 2024 investor letter:

“The fund maintained a position in Apple Inc. (NASDAQ:AAPL) throughout the quarter through the release of the company’s new iPhone 16 in September. Company leaders were excited about the release of the new model, as this is the first model that will feature enhanced AI capabilities through the Apple Intelligence features. Sales for the first few weeks in October and November trailed behind year over year sales from the iPhone 15, as availability of Apple Intelligence was not compatible with all iPhone models. Apple announced a partnership with OpenAI that has allowed the integration of ChatGPT into the Apple ecosystem, separate from the core Apple Intelligence features. This partnership highlights continued progress from Apple to introduce AI capabilities into its products and we expect the iPhone 17 to have even more expansive AI capabilities, increasing potential demand for the new model that is on track to be released in 2025.”