Jim Cramer’s Top 10 Must-Watch Stocks Today

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1. Apple Inc. (NASDAQ:AAPL)

Number of Hedge Fund Investors: 184

Jim Cramer recently discussed Apple Inc. (NASDAQ:AAPL), which is on the verge of launching a new phone featuring advanced artificial intelligence. Historically, Apple Inc. (NASDAQ:AAPL)’s stock has been expensive, but the company has now developed a steady stream of service revenue, providing more stable earnings.

“How about a company like Apple, which is about to issue a new phone offering the latest in artificial intelligence for consumers? The stock’s historically pricey, but Apple didn’t have a sticky and predictable service revenue stream until now, creating a whole new level of stable earnings. Plus, Apple will be using ChatGPT, which cost OpenAI and Microsoft billions to build, yet Apple gets it for free due to its huge, highly valued installed base.”

Apple Inc. (NASDAQ:AAPL) offers a compelling investment opportunity despite recent challenges. Apple Inc. (NASDAQ:AAPL)’s Q3 2024 earnings report showed strong financial performance, with revenue reaching $81.8 billion, slightly above expectations but marking a minor year-over-year decline. Notably, Apple Inc. (NASDAQ:AAPL)’s services segment achieved a record $21.2 billion in revenue, underscoring the success of its shift towards a more services-oriented model.

The upcoming CFO transition, with Kevan Parekh set to replace Luca Maestri in January 2025, introduces some short-term uncertainty. However, the launch of the iPhone 16 with AI capabilities in September is expected to kickstart a new upgrade cycle and potentially push Apple Inc. (NASDAQ:AAPL)’s valuation beyond $4 trillion.

While we acknowledge the potential of Apple Inc. (NASDAQ: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 timeframe. If you are looking for an AI stock that is more promising than the ones on our list but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley and Jim Cramer Says NVIDIA ‘Has Become A Wasteland’.

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