Top 10 AI Stocks on Wall Street’s Radar

2. Apple Inc. (NASDAQ:AAPL)

Number of Hedge Fund Holders: 158

Apple Inc. (NASDAQ:AAPL) is a global technology company. On January 3rd, Bernstein raised the firm’s price target on Apple to $260 from $240 and kept an “Outperform” rating on the shares.  The rating, issued as part of the 2025 outlook for the IT hardware sector, noted how IT hardware is a “structurally challenged sector”. Nevertheless, the firm anticipates a better IT spending backdrop in 2025, benefiting companies with robust product portfolios. The firm further stated that stock valuations are currently at the higher end and that profitability from artificial intelligence remains challenging.

One of the top stock picks for Bernstein was Apple Inc. The firm adjusted the price target for the company to reflect market appreciation since its last set of targets. The firm stated that Apple is a platform business, which has helped it grow steadily. It is characterized by mid-single-digit revenue growth, improving margins, disciplined capital returns, and double-digit earnings growth. Bernstein further stated that the stock’s valuation is “full”. Nevertheless, the company is a standout stock within the IT hardware sector owing to its focus on services and platform enhancement, particularly AI.

“Our top picks entering 2025 remain Apple and Dell”.