Jim Cramer’s Top 11 Trump Trades: Winners and Losers

3. Apple Inc (NASDAQ:AAPL)

Number of Hedge Fund Investors: 150

Apple Inc (NASDAQ:AAPL) is one of the stocks that could see troubles if Donald Trump comes to power because of the China factor, according to Cramer. He said that Apple Inc (NASDAQ:AAPL) has high exposure to China as the company makes “Chinese phones with Chinese labor”

However, there’s a positive factor for Apple, too, if Trump comes to the White House, according to Cramer. He thinks Apple Inc (NASDAQ:AAPL)  has been “abused” by the government on several regulatory issues.

“Neither of the candidates seems like Big Tech but Trump administration will certainly be more circumspect about hammering great American tech companies.”

Does Apple Inc (NASDAQ:AAPL) have any AI growth catalysts? Wall Street is turning bullish on the company after Apple revealed Apple Intelligence plans at the WWDC event.

Morgan Stanley expects Apple Inc (NASDAQ:AAPL) to ship nearly 500 million iPhones in the next two years, marking a 6% increase from the FY21-FY22 cycle. Morgan Stanley said this growth can boost the annual iPhone average selling price (ASP) by 5%, leading to nearly $485 billion in revenue and $8.70 in earnings per share by FY26, exceeding consensus estimates by 7-9%.

Wall Street is expecting a new AI-powered refresh cycle for iPhones because it’s been years since millions of users upgraded their iPhones. Wedbush recently said 270 million, of 1.5 billion iPhones, have not upgraded in 4+ years

Apple Inc (NASDAQ:AAPL) is also training Siri based on its own language models. These smaller models run on devices, handling various daily tasks, with Apple revealing its on-device model has 3 billion parameters. For more complex tasks, a larger language model runs on Apple Inc (NASDAQ:AAPL) private servers, though its size is undisclosed and likely smaller than current large language models like OpenAI’s GPT-4, which has around 1.8 trillion parameters.

Wedgewood Partners stated the following regarding Apple Inc. (NASDAQ:AAPL) in its Q2 2024 investor letter:

“Apple Inc. (NASDAQ:AAPL) also contributed to performance after unveiling its AI strategy to its software developers. The Company has been at the forefront of proprietary computer processor development for over a decade. Given the compute-intensive nature of AI applications, Apple is well-situated to develop a suite of compelling, consumer-friendly AI services that are also cost-effective. While revenue growth has been relatively flat post-Covid-19, we expect Apple’s AI value proposition will be compelling enough for consumers to continue growing their engagement in the Apple ecosystem over the next several years.”