We recently published a list of 10 Trending AI Stocks to Watch in December. In this article, we are going to take a look at where Apple Inc (NASDAQ:AAPL) stands against other trending AI stocks to watch in December.
Jared Cohen, Goldman Sachs president of global affairs, co-head of the Goldman Sachs Global Institute, said while talking to CNBC in a latest program that amid rising data center-driven energy demand because of AI, the US would need to collaborate with other countries via “diplomacy.”
“If you look at data centers for cloud workloads versus data centers for AI workloads, data centers for AI workloads require ultra-high density. They need a concentrated power source, and so intermittent power like wind and solar doesn’t fit the bill. You need base load power, so I think nuclear, coal, and natural gas are necessary, and we have plenty of that in the US. The problem is we can’t transport it from where it is through multiple jurisdictions because of the ‘not in my backyard’ issue. So, the US is going to need some kind of overflow option if it wants to continue leading in this space. There’s not a single geography that I would say represents a panacea to this problem.”
Answering a question about whether the return to relatively cheaper and reliable energy sources like coal could satisfy the AI-driven energy demand, the analyst said the US would still need to look beyond just relying on its own sources because the need for power is huge.
“We’re going to have to probably bring another 35-plus gigawatts of power online relative to the 17 gigawatts of power that are already online feeding these data centers in just the next couple of years. That’s not enough, that’s not enough time. So, you know, the US is going to continue to lead in the space, but it’s not going to be able to lead on its own.”
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For this article we picked 10 AI stocks that are getting investors’ attention on the back of latest news. With each stock we have mentioned the number of hedge fund investors. 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).
A wide view of an Apple store, showing the range of products the company offers.
Apple Inc (NASDAQ:AAPL)
Number of Hedge Fund Investors: 158
Earlier this month, Gene Munster from Deepwater Asset Management said while talking to CNBC that we are not going to see the impact of Apple AI on Apple Inc (NASDAQ:AAPL)’s numbers until the next “few quarters.”
He has revised his targets for growth but believes the stock has upside in the long term.
“I own it personally and think there’s still some upside. I’m always looking ahead, and I believe the numbers still have room to grow. However, one piece has changed. If you had asked me two weeks ago, I would’ve said the Street expected iPhone growth around 15% for fiscal 2025. I’ve revised that—I now think it’s closer to 10%. The Street is at 5%, so I still see upside, but not as much. I’m also shifting some of that revenue into 2026, so this represents a slight change in my perspective.”
Madison Sustainable Equity Fund stated the following regarding Apple Inc. (NASDAQ:AAPL) in its Q3 2024 investor letter:
“Alphabet Inc., Eli Lilly and Company, Qualcomm Incorporated, Microsoft Corporation, and Apple Inc. (NASDAQ:AAPL) were the largest detractors. Apple has been volatile in the last quarter but ended on strength. Early in the quarter, Apple benefited from the introduction of their AI strategy, Apple Intelligence. They followed in September with the new iPhone 16, which also created some excitement. We are underweight to Apple, which has resulted in a headwind for performance.”
Overall, AAPL ranks 5th on our list of trending AI stocks to watch in December. While we acknowledge the potential of AAPL, our conviction lies in the belief that under the radar 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.
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Disclosure: None. This article is originally published at Insider Monkey.
