5 Best AI Stocks to Buy for 2021 and Beyond

2. Apple Inc. (NASDAQ:AAPL)

Number of Hedge Fund Holders: 138

Apple Inc. (NASDAQ:AAPL) is an American multinational technology company that is also an undisputed leader in the AI world. The company’s AI-enabled assistant, Siri, helps people to automate tasks and provide information. Moreover, Apple Inc. (NASDAQ:AAPL) is the leading buyer of companies in the global artificial intelligence space. The company ranks second on our list of the best AI stocks to buy for 2021 and beyond.

According to the CEO of Apple Inc. (NASDAQ:AAPL), the company has acquired over 100 companies over the last six years and has also invested in back-end technology. In Q3 2021, Apple Inc. (NASDAQ:AAPL) posted a GAAP EPS of $1.30, beating the estimates by $0.29. The company reported revenue of $81.4 billion, up 36.4% from the prior-year quarter. Services revenue stood at $17.4 billion versus the estimates of $16.32 billion. In September, Tigress Financial lifted its price target on Apple Inc. (NASDAQ:AAPL) to $198, while reiterating a ‘Strong Buy’ rating on the shares.

Of the 873 hedge funds tracked by Insider Monkey, 138 hedge funds have positions in Apple Inc. (NASDAQ:AAPL) in Q2 2021, up from 127 in the previous quarter. These stakes are valued at over $145.5 billion. With shares worth over $121.5 billion, Warren Buffett’s Berkshire Hathaway is the company’s leading shareholder.

Distillate Capital mentioned Apple Inc. (NASDAQ:AAPL) in its first-quarter 2021 investor letter. Here is what the firm has to say:

“Apple is an even more notable situation and one that highlights our free cash valuation methodology and bears further discussion given its Q3 ‘20 sale from our strategy. For an extended period, Apple was extraordinarily inexpensive on a free cash flow basis and was the largest position in our strategy, exceeding 5% of the portfolio.”