Top 10 Blue Chip AI Stocks to Buy According to Billionaire Cliff Asness

Page 9 of 9

1. Apple Inc. (NASDAQ:AAPL)

AQR Capital Management Equity Stakes: $2.59 Billion

Number of Hedge Fund Holders: 166

Apple Inc. (NASDAQ:AAPL) is a technology company that designs, manufactures, and sells a wide array of consumer electronics, including smartphones, personal computers, tablets, wearables, and online services. The company is increasingly integrating artificial intelligence into its products and services to strengthen its competitive edge. Likewise, it is the largest holding in AQR Capital Management.

Apple Inc. (NASDAQ:AAPL) is best known for its flagship iPhone product line, accounting for the biggest share of its total revenue at 52%. It also generates a significant chunk of revenues from Macs, iPads, and wearable sales. Nevertheless, the company is increasingly investing in its services segment, which poses higher profit margins of over 70%. With over 2.2 billion Apple devices on sale, the company is increasingly integrating AI services to strengthen its service offerings.

More consumers may be encouraged to upgrade their phones and tablets in order to take advantage of the newest features and capabilities as the firm provides more AI-powered services. Amit Daryanani, an Evercore ISI analyst, projects that Apple Inc.’s (NASDAQ:AAPL) earnings per share would increase from $7.33 this year to $11.50 by 2029 due to its consistent performance and growing services division. Growing iPhone market share, prospective AI revenue streams, and increased monetization should also act as key growth drivers.

While we acknowledge the potential of Apple Inc. (NASDAQ:AAPL) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AAPL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.

Page 9 of 9