12 Best Technology Stocks to Invest In for the Long Term

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7. Apple Inc. (NASDAQ:AAPL)

Number of Hedge Fund Holders: 158

Apple Inc. (NASDAQ:AAPL) is a technology company known for its consumer electronics, including the iPhone, iPad, Mac computers, Apple Watches, and AirPods. It has a loyal customer base, and its subscription services, including Apple Music and Apple TV+, are experiencing significant growth.

While China has historically been a significant market for the company, it experienced a 7.7% year-over-year sales decline in FY24. India, on the other hand, achieved record revenue in FQ4 2024. Despite headwinds, its strong brand loyalty and continuous innovation efforts position it well for long-term growth.

Apple’s Services revenue reached an all-time high of $25 billion in FQ4 2024, a 12% year-over-year increase, particularly attributed to the App Store. This diversification lessens its dependence on hardware sales. Still, the launch of the iPhone 16, with its AI-powered features, is anticipated to fuel significant demand. Analysts project 90 million units of the iPhone 16 to be sold in 2025.

Mar Vista Strategic Growth Strategy viewed AAPL stock positively due to investor enthusiasm for its AI roadmap and iPhone 16 launch. Here’s what is said regarding Apple Inc. (NASDAQ:AAPL) in its Q3 2024 investor letter:

“Apple Inc. (NASDAQ:AAPL) stock was strong in the quarter as investors viewed the company’s generative AI roadmap and iPhone 16 product cycle positively. The market was reminded of the strength of the Apple ecosystem as management demonstrated how generative AI solutions would be integrated into its iOS 18 operating system, which was broadly released in the iPhone 16 late in calendar Q3. We believe Apple’s generative AI-enabled products should spur a meaningful iPhone upgrade cycle and create new avenues of monetization through its app store and advertising offerings. We believe this will support intrinsic value growth that will range between high single digits and low double-digits over our investment horizon.”

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