1. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders as of Q4: 166
Adage Capital Management’s Equity Stake: $3.49 Billion
Originally founded in 1976, Apple Inc. (NASDAQ:AAPL) remains a dominant force in the global technology sector, ranking as the top stock pick for Adage Capital Management. In Q4 2024, the company reported revenue of $124.3 billion, reflecting a 3.95% year-over-year increase and exceeding analyst expectations. Earnings per share rose to $2.40, up from $2.18 in the previous year. On January 30, 2025, Apple’s Board of Directors announced a quarterly dividend of $0.25 per share, payable on February 13, 2025. Hedge fund interest in Apple also grew, with 166 out of 1,009 funds tracked by Insider Monkey holding positions valued at nearly $118.56 billion by the end of Q4, an increase from 158 funds in the prior quarter.
Looking ahead, Apple Inc. (NASDAQ:AAPL) is making a $500 billion investment in the U.S. over the next four years, focusing on expanding domestic manufacturing, doubling its Advanced Manufacturing Fund to $10 billion, and hiring 20,000 employees in key areas such as R&D, silicon engineering, software development, and AI. The company will begin producing servers in Houston this year and plans to open a 250,000-square-foot manufacturing facility in Texas by 2026, aligning with President Trump’s push for increased domestic production.
In March 2025, Apple Inc. (NASDAQ:AAPL) announced that it has delayed its more personalized Siri features, initially expected this spring, with plans to roll them out “in the coming year.” The update was meant to enhance Siri’s ability to understand personal context and take actions across apps, but internal concerns about functionality have led to setbacks. Bloomberg’s Mark Gurman reports that Apple executives, including Craig Federighi, found the features unreliable in testing, and some within Apple’s AI division fear they may need to be rebuilt from scratch. A fully modernized, conversational Siri might not debut until iOS 20 at the earliest.
Tsai Capital mentioned Apple Inc. (NASDAQ:AAPL) in its Q4 2024 investor letter. It stated:
“We initiated our investment in Apple Inc. (NASDAQ:AAPL) in 2016 and elevated it to a core holding in 2018, the same year the company introduced its redesigned 13-inch and 15-inch MacBook Pro models. Under Tim Cook’s visionary leadership, Apple has consistently redefined innovation in hardware and software.
The September 2024 launch of the iPhone 16, with its groundbreaking AI capabilities, including enhanced image generation tools, marks another inflection point. We believe this transformative device is the foundation for an AI-driven supercycle and could entice approximately 100 million consumers to upgrade, reinforcing Apple’s leadership in the industry.
Today, Apple’s ecosystem spans over two billion active devices, supported by a rapidly-growing base of subscription services. This strategy has helped to turbocharge customer engagement and spending. In the most recent fiscal year, which ended in September 2024, Apple’s high-margin services division accounted for 39.3% of total gross profits, up from 32.8% just two years ago.
Apple’s financial footing remains exceptional, with approximately $50 billion in net cash and marketable securities. Looking ahead, we expect earnings-per-share growth to outpace revenue growth, driven by margin expansion and continued share buybacks.”
Overall, Apple Inc. (NASDAQ:AAPL) ranks first on our list of top 10 stocks to buy according to Adage Capital Management. While we acknowledge the potential for AAPL as an investment, our conviction lies in the belief that some 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.
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