15 Best Hardware Stocks According to Hedge Funds

2. Apple Inc. (NASDAQ:AAPL)

Number of Hedge Fund Shareholders In Q1 2024: 150

Apple Inc. (NASDAQ:AAPL) is the world’s biggest consumer technology company. Despite its limited actions on the front, Apple has been seeing a lot of coverage for its potential AI initiatives. Most of these have covered its Siri virtual assistant, and some quarters expect an AI revamp for Siri. The average of 39 one year analyst share price targets for Apple Inc. (NASDAQ:AAPL)’s shares is $204.31 and the stock is rated Buy on average. Well known Apple Inc. (NASDAQ:AAPL) analyst Gene Munster shared optimism for Apple Inc. (NASDAQ:AAPL)’s AI potential recently when he shared that the market was in “denial” about its AI potential. He was joined by Wedbush’s Dan Ives, who believes that Apple Inc. (NASDAQ:AAPL)’s stock could jump by as much as $40 because of AI.

During Q1 2024, 150 hedge funds part of Insider Monkey’s database were Apple Inc. (NASDAQ:AAPL)’s stakeholders. Warren Buffett’s Berkshire Hathaway owned the most valuable stake which was worth $135 billion.

RiverPark Large Growth fund shared in its Q1 2024 investor letter that a strong installed user base is one of Apple Inc. (NASDAQ:AAPL)’s biggest strengths. According to the fund:

Apple Inc. (NASDAQ:AAPL): Apple shares were a top detractor in the quarter. The company’s stock was pressured by negative news items including a government antitrust case, an Apple Watch patent dispute, and slowing China iPhone sales. Ultimately the company’s fiscal 1Q24 earnings report delivered a slightly better than expected quarter, but with guidance that disappointed investors. 1Q24 revenue and gross margin were better than feared, buoyed by stronger than expected worldwide iPhone sales which grew 6% despite a slight decline in China iPhone sales. Services revenue in the quarter was as expected and signaled the third quarter in a row of accelerating growth. Gross margins were also stronger than expected at 45.9%, the highest level in more than a decade. Guidance of $90 billion of revenue for 2Q24 was light however, due to weaker than expected iPhone sales in the current period and year-over-year declines in other hardware products facing difficult year-over year comps.

Although near-term trends are a bit muted, Apple is carrying lean inventory into an iPhone refresh cycle later this year. With an installed base of 2.2 billion active devices and significant growth of the company’s recurring revenue Services segment, we believe that Apple remains one of the most innovative, best positioned and most profitable companies in the mobile technology industry.