20 Trending AI Stocks on Latest Analyst Ratings and News

2. Apple Inc. (NASDAQ:AAPL)

Number of Hedge Fund Holders: 184 

Apple Inc. (NASDAQ:AAPL) is a consumer electronics firm. The company is planning to launch the next generation of the iPhone lineup in the coming days. This annual event has received more attention than usual around the globe because the tech giant is expected to unveil new AI features for these phones. Wall Street analysts have predicted that these features would not be backward compatible and would thus lead to a major upgrade cycle in iPhone. Since 50% of the total revenue base of the firm is based around iPhones, investors in the company are eagerly waiting for the launch event. Lagging iPhone sales in recent years have slowed the revenue growth for Apple, leading to concerns around the EPS trajectory as well.

Apple Inc. (NASDAQ:AAPL) is trading at a forward PE of 32, which indicates that much of the AI hype has already been priced into the stock. This is because peers in the tech world, who are also spending massively on AI and have AI-related products in the pipeline, are trading at lower multiples. For example, Google is trading at a forward PE of 21, while Meta is trading at a forward PE of almost 25. Percentage figures highlight this data even better. Apple stock is trading nearly 50% higher in forward PE data compared to Google, and 40% higher than Meta.