Kevin O’Leary’s Stock Portfolio: 15 Stock Picks for 2025

4. Apple Inc. (NASDAQ:AAPL)

Number of Hedge Fund Holders: 158

Apple Inc. (NASDAQ:AAPL), a multinational technology company, is well-known for its flagship products, such as the iPhone, Mac, and Apple Watch, as well as its extensive suite of services, including Apple Music and iCloud. With approximately 2.2 billion Apple devices worldwide, the company has a sizable platform from which to launch its AI services.

Bernstein raised its price target for Apple Inc. (NASDAQ:AAPL) from $240 to $260 as part of its 2025 IT hardware industry forecast and maintained an Outperform rating on the company’s stock. The company sees the names in its coverage universe primarily as trading stocks rather than long-term core holdings, and IT hardware as a “structurally challenged sector.” Although many companies’ portfolios are stronger than in the past, Bernstein predicts a more favorable environment for IT spending by 2025. However, it also notes that stock valuations are at the upper end of the spectrum, artificial intelligence profitability remains difficult, and it does not see much upside from a PC refresh cycle in 2025. As 2025 progresses, however, Apple Inc. (NASDAQ:AAPL) continues to be one of the firm’s top picks for the year.

Apple Inc. (NASDAQ:AAPL) reported $94.9 billion in revenue for the fourth quarter of 2024, up 6% from the same period the year before. Product revenue increased to nearly $70 billion from $67 billion in the same period in 2023. In addition, the company distributed $29 billion to shareholders and reported $27 billion in operating cash flow.

In its third quarter 2024 investor letter, Madison Investments said the following regarding Apple Inc. (NASDAQ:AAPL):

“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.”