ChatGPT Stock Advice: 10 Recent Stock Recommendations

5. Apple Inc. (NASDAQ:AAPL)

Number of Hedge Fund Holders: 184

Apple Inc. (NASDAQ:AAPL) delivered a strong third-quarter performance, despite weaker-than-expected sales in China. While the company’s China sales declined by 6.5% year-over-year, the overall results exceeded Wall Street expectations. According to Toni Sacconaghi, the quarter was “clean,” with Apple Inc. (NASDAQ:AAPL) slightly surpassing estimates and providing modestly optimistic guidance for the upcoming quarter.

Dan Ives, Managing Director of Equity Research, Wedbush Securities maintains a bullish stance, describing the company’s performance as “good enough for now.” With the iPhone 16 cycle yet to begin, Ives sees strong potential, especially as Apple’s services sector remains robust and China begins to turn into a tailwind for the company. He rates Apple’s position as highly favorable, predicting the stock will continue to perform well, particularly as the company enters what he terms an AI-driven super cycle with the upcoming iPhone 16.

Recently, Ben, Head of Technology Research, provided insights into Apple’s future. Despite Buffett’s sales, he remains optimistic about Apple Inc. (NASDAQ:AAPL), citing a “generational upgrade cycle” as a key driver. Ben highlighted that Apple’s user base is aging, creating significant potential for new upgrades, especially with the integration of Apple Intelligence, which is exclusive to newer models.

Concerns exist about whether Apple Intelligence will substantially impact the upgrade cycle, particularly if its benefits are limited to higher-end phones. However, Ben projects that Apple’s earnings could exceed $9 per share in a bull case scenario, potentially approaching $10. Historical data shows that iPhone growth can surpass 20%, and while current expectations are modest—mid-single digits for iPhone sales this year and next—Ben believes these are achievable. He anticipates a gradual but positive upgrade cycle peaking around 2026, which should be an improvement over recent stagnation.