Apple Inc. (AAPL): Slower Revenue Growth vs. Ecosystem Durability – What Wins?

We recently published a list of Top 10 Trending AI Stocks on Wall Street. In this article, we are going to take a look at where Apple Inc. (NASDAQ:AAPL) stands against other top trending AI stocks on Wall Street.

President Donald Trump has recently announced a private sector investment to build more AI data centers, marking yet another effort by the US government to stay ahead in the race for supremacy in artificial intelligence.

A prominent player in the field has been OpenAI, the artificial intelligence startup known to have started the AI arms race in the first place. In its latest, OpenAI has recently previewed an AI agent that can carry out tasks on the web for users. This move seeks to enhance its chatbot amidst intensifying competition.

READ ALSO: 10 Buzzing AI Stocks on Latest News and Ratings and 11 AI Stocks That Should Be On Your Watchlist

Dubbed the “Operator”, the tool is powered by a model that allows it to interact with on-screen buttons, menus, and text fields.

“This capability marks the next step in AI development, allowing models to use the same tools humans rely on daily and opening the door to a vast range of new applications”.

– OpenAI said in a blog post.

OpenAI says Operator is “an agent that can go to the web to perform tasks for you”. As such, companies are increasingly using agents like these to assist in tasks and execute actions without direct human intervention. Currently available to Pro users in the US, the Operator can perform numerous tasks, such as creating to-do lists or assisting in planning vacations.

The company states that it eventually plans to expand the Operator to Plus, Team, and Enterprise users and will be integrating Operator into ChatGPT. It also revealed how the tool currently faces trouble with some tasks, such as managing calendars and creating slideshows.

“Operator is one of our first agents, which are AIs capable of doing work for you independently. You give it a task and it will execute it”.

– OpenAI.

Based on trends in artificial intelligence, agents are the next big advancement in the AI field. Even Nvidia CEO Jensen Huang agrees that they are. Artificial Intelligence agents are autonomous intelligent systems that can perform specific tasks without human intervention.

“AI agents are going to get deployed. I think this year we’re going to see it take off”.

According to him, areas such as software engineering, digital marketing, and customer service are the first where AI agents can add value. As for his company, it is already using AI agents in chip design.

For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

Apple Inc. (AAPL): Expanding AI Features with Apple Intelligence and Ecosystem Strength

A wide view of an Apple store, showing the range of products the company offers.

Apple Inc. (NASDAQ:AAPL)

Number of Hedge Fund Holders: 158

Apple Inc. (NASDAQ:AAPL) is a technology company that recently launched Apple Intelligence, its intelligence system. One of the biggest analyst calls for Thursday, January 23, has been for Apple Inc. Goldman Sachs reiterated the stock as “Buy” and lowered its price target to $280 per share from $286. The price target downgrade, driven by lower iPhone sales, comes ahead of the company’s December-quarter earnings report next week. The firm anticipates the tech giant to report fiscal Q1 earnings per share of $2.35, in line with consensus, and revenue of $124.2B versus the consensus of $124.8B. According to the firm, even though the competition within the Chinese market is increasing, it is optimistic about accelerating iPhone growth in fiscal 2026. This iPhone growth will largely be driven by the continued rollout of Apple Intelligence with a more robust feature set.

“We anticipate market sentiment to improve midyear, which is a seasonally strong period for the stock, as concerns about Apple Intelligence’s limited impact on iPhone demand and competition in China are replaced by optimism over the new slate of Apple Intelligence features revealed at WWDC 2025, the launch of new Mac, iPad and iPhone SE products in spring 2025, and potential new features for the iPhone 17/18 in fall 2025/26”.

-Michael Ng and his team wrote.

“We are Buy-rated on AAPL as we believe that the market’s focus on slower product revenue growth masks the strength of the Apple ecosystem and associated revenue durability & visibility”.

Overall, AAPL ranks 2nd on our list of top trending AI stocks on Wall Street. While we acknowledge the potential of AAPL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AAPL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap

Disclosure: None. This article is originally published at Insider Monkey.