Apple Inc (NASDAQ:AAPL) has been making waves in the AI stock market, ranking 5th in the list of top 10 AI stocks that Wall Street analysts are upgrading. Despite skepticism from some investors about overpaying for tech stocks promising future gains, the market seems to be bullish on AI stocks, with analysts predicting a flood of money heading towards the market.
Gene Munster, Managing Partner of Deepwater Asset Management, recently stirred the pot by stating that Apple is a better long-term investment than Nvidia, citing the market’s denial of Apple’s AI potential. With 150 hedge fund investors backing Apple, the tech giant is gearing up to reveal its AI plans at the upcoming WWDC event.
Dan Ives of Wedbush, a prominent Apple bull, believes that Apple will see a surge in its stock price due to its AI offerings, with a $275 price target on Apple shares. Despite trading at a high multiple, Apple’s growth trajectory could change if it can deliver on its AI-related catalysts.
Recent developments, such as the unveiling of the M4-powered iPad Pro with a powerful Neural Engine, showcase Apple’s commitment to AI innovation. RiverPark Large Growth Fund remains optimistic about Apple’s future, citing its strong revenue and gross margin performance.
While Apple holds promise in the AI market, smaller AI stocks may offer greater returns in a shorter timeframe. For investors seeking opportunities in the AI sector, exploring the potential of smaller AI stocks could lead to lucrative returns.