Wells Fargo’s Tech Stocks To Beat The S&P: 14 Top AI & Non-AI Stocks

10. Apple Inc. (NASDAQ:AAPL)

Number of Hedge Fund Holders In Q3 2024: 158

NTM EPS Estimate: $7.38

Apple Inc. (NASDAQ:AAPL) is the most valuable consumer electronics firm in the world. A global beast, it earned a whopping $296 billion in revenue during the nine months ending in June 2024. Out of this, 52% or $155 billion came from the iconic iPhone smartphone. As a result, the iPhone is baked into Apple Inc. (NASDAQ:AAPL)’s hypothesis, and it is the most important determinant of the firm’s hypothesis. Investors rely on the firm’s ability to regularly launch updates to the smartphone and ensure that its 1.46 billion iPhone users regularly update their smartphones. Another key part of Apple Inc. (NASDAQ:AAPL)’s hypothesis is its second-largest business called Services. Through this business, the firm earns revenue from companies like Google which pay it billions of dollars to make their services the default on the iOS platform. Consequently, any regulatory actions against this could deal Apple Inc. (NASDAQ:AAPL) a blow. Over the long term, the firm’s design strength and brand image can prove to be valuable moats that also enable it to push artificial intelligence services to consumers.

Columbia Threadneedle Investments mentioned Apple Inc. (NASDAQ:AAPL) in its Q3 2024 investor letter. Here is what the fund said:

“Shares of Apple Inc. (NASDAQ:AAPL) increased during the quarter after reporting quarterly results in August that met or exceeded expectations. The company also benefited from holding an investor event in September to introduce the newest iteration of products and accessories. Apple introduced the latest iteration of its flagship model, the iPhone 16, which features updated hardware and a refreshed operating system that integrates AI but will be exclusive to newer iPhone models, which could compel a refresh cycle. The gradual introduction of AI into the Apple product ecosystem is consistent with the company’s historical fast follower approach and represents a new tenant of the investment thesis as the market awaits further information related to the company’s AI strategy.”