8 Best FAANG Stocks To Buy According to Analysts

5. Apple Inc. (NASDAQ:AAPL)

Analyst Upside as of October 22, 2024: 6.3%

Number of Hedge Fund Holders: 184

Apple Inc. (NASDAQ:AAPL) is one of the best FAANG stocks to buy according to analysts. The company behind the iPhone also sells a range of digital and entertainment products including iCloud, Apple Pay, Apple Music, and Apple TV+.

In the fiscal third quarter of 2024, the company launched Apple Intelligence, a personal intelligence system by Apple backed by AI. The new system is integrated into all new products by Apple. On October 21, Samik Chatterjee, an analyst at JPMorgan, joined CNBC’s “Squawk on the Street” where he discussed the demand for iPhone 16 and the influence Apple Intelligence will have on it. He argued that Apple Intelligence will likely drive the demand for iPhone 16. Momentum did not build up early this year due to a delay in Apple Intelligence, but now we are looking at a recovery.

Chatterjee adds that AAPL and its consumers are waiting for the new Apple Intelligence features to launch, which will lead to a surge in demand for the iPhone 16 and an even greater surge will be seen for the iPhone 17 launching next year. With or without AI, its proprietary products, especially the iPhone, reported robust earnings. In the fiscal third quarter of 2024, the iPhone generated revenue worth $39.3 billion during FQ3 2024, making up for nearly 45% of the total revenue.

Overall, Apple Inc. (NASDAQ:AAPL) has grown its revenue and net income by 8% and 10% respectively, over the past 10 years. AAPL holds a legacy with a loyal customer base. The company has had a decent growth trajectory over the years and the integration of AI will only accelerate it further.

Columbia Contrarian Core Fund stated the following regarding Apple Inc. (NASDAQ:AAPL) in its Q2 2024 investor letter:

“Apple Inc. (NASDAQ:AAPL) – Despite the stock falling after announcing earnings in late May, Apple regained ground toward the end of the quarter, fueled by the company’s long-awaited AI announcement at its annual Worldwide Developers Conference (WDC). At the conference, the company showcased some of its new AI features powered by Apple Intelligence that would be coming to Apple products and also announced a partnership with ChatGPT. Investors greatly welcomed the announcement of Apple’s AI strategy and the stock surged, passing Microsoft as the world’s most valuable company (although this hallmark wouldn’t last). Beta testing of these new features will be coming later this summer, but the initial promise and excitement looks to be a potential catalyst for an upgrade cycle, as the company looks to persuade users who have had the same smartphone for years to consider an upgrade.”