6. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 150
Trailing 10-Year Returns: 24.83%
Apple Inc. (NASDAQ:AAPL) stands as a prominent tech giant. Headquartered in Cupertino, California, the company is renowned for its flagship products, including the iPhone, iPad, and Mac. Notably, Bloomberg recently reported on May 9 that the tech giant plans to incorporate its own high-end chips in data centers to deliver AI features this year.
TF International Securities analyst Ming-Chi Kuo said in a fresh note that Apple has a competitive edge over others with its on-device AI.
“Consumers may find purchasing Microsoft’s AI PC confusing (calculating whether it reaches 40 TOPS before purchase), whereas Apple directly tells consumers which models can support Apple Intelligence. Regardless of whether on-device AI applications meet consumer needs, Apple has a clear selling advantage from the start,” Kuo said.
On June 14, Erste Group upgraded its rating on Apple Inc. (NASDAQ:AAPL) from Hold to Buy, citing several positive factors contributing to the tech giant’s favorable outlook. The firm highlighted Apple Inc. (NASDAQ:AAPL)’s strong customer loyalty and continuous product innovation as key strengths. They emphasized the company’s advancements in its Mac lineup, particularly the introduction of the M4 chip, as a significant driver of long-term growth.
As of the first quarter of 2024, Insider Monkey’s database revealed that 150 hedge funds held stakes in Apple Inc. (NASDAQ:AAPL), collectively valued at $205 billion. This represented a notable increase from the previous quarter, where 131 hedge funds held stakes valued at $161 billion.
RiverPark Large Growth Fund stated the following regarding Apple Inc. (NASDAQ:AAPL) in its first quarter 2024 investor letter:
“Apple Inc. (NASDAQ:AAPL): Apple shares were a top detractor in the quarter. The company’s stock was pressured by negative news items including a government antitrust case, an Apple Watch patent dispute, and slowing China iPhone sales. Ultimately the company’s fiscal 1Q24 earnings report delivered a slightly better than expected quarter, but with guidance that disappointed investors. 1Q24 revenue and gross margin were better than feared, buoyed by stronger than expected worldwide iPhone sales which grew 6% despite a slight decline in China iPhone sales. Services revenue in the quarter was as expected and signaled the third quarter in a row of accelerating growth. Gross margins were also stronger than expected at 45.9%, the highest level in more than a decade. Guidance of $90 billion of revenue for 2Q24 was light however, due to weaker than expected iPhone sales in the current period and year-over-year declines in other hardware products facing difficult year-over year comps.
Although near-term trends are a bit muted, Apple is carrying lean inventory into an iPhone refresh cycle later this year. With an installed base of 2.2 billion active devices and significant growth of the company’s recurring revenue Services segment, we believe that Apple remains one of the most innovative, best positioned and most profitable companies in the mobile technology industry.”
