3. Apple Inc (NASDAQ:AAPL)
Billionaire Paul Tudor Jones Q1’2024 Stake: $57,187,894
Despite having a low dividend yield, Apple Inc (NASDAQ:AAPL) is a notable dividend stock thanks to almost a decade of dividend growth and strong share upside potential amid AI-related catalysts. Bank of America recently said in a note Apple Inc’s (NASDAQ:AAPL) plans to overhaul its Siri assistant with new AI-powered features could infuse a new iPhone upgrade cycle. BofA’s Wamsi Mohan expects conversational AI to become more popular and give a boost to AI-powered phones. He has a Buy rating and $230 price target on Apple Inc (NASDAQ:AAPL).
Notable Wall Street analyst and Deepwater Asset Management Managing Partner Gene Munster recently made waves when he said in a post on Twitter that Apple Inc (NASDAQ:AAPL) is a better investment than Nvidia for the long term. Munster believes “owning Apple Inc (NASDAQ:AAPL) over the next year will have a higher return” because the market is in denial about Apple Inc.’s (NASDAQ:AAPL) AI potential. Apple Inc (NASDAQ:AAPL) is trading at 27x its 2025 EPS estimate, which is still a high multiple given Apple Inc’s (NASDAQ:AAPL) 9.60% growth estimate for 2025 and 10.50% per-annum growth expected over the next five years. But all of this could change if Apple Inc (NASDAQ:AAPL) is able to pull AI-related catalysts out of its bag. The WWDC event and the new few weeks and months would be critical for Apple Inc’s (NASDAQ:AAPL) growth trajectory.
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.”
