10 AI Stocks in the Spotlight Today

3. Apple Inc. (NASDAQ:AAPL)

Number of Hedge Fund Holders: 159

Apple Inc. (NASDAQ:AAPL) is one of the 10 AI Stocks in the Spotlight Today. On July 28, JPMorgan analyst Samik Chatterjee reiterated an “Overweight” rating on the stock as Apple faces potential business impacts from the ongoing Google antitrust case.

According to the firm, Apple receives an estimated $28B globally each year from Alphabet for Google traffic acquisition costs. Out of this, $12.5B is for paying for the traffic generated from US customers.

The firm has assessed the consequences for Apple from the remedies yet to be announced for the Department of Justice versus Google case relative to Google’s monopoly in search. It believes that the worst-case scenario for Apple is that Google is prohibited from making distribution payments.

This is going to be the worst case for Apple as it would stop the $12.5B that Apple receives from Google for US traffic. The said scenario would therefore result in a 10% earnings hit.

However, under Google’s proposed remedies, the firm sees only “modest changes at best by largely maintaining the current status quo.” It also believes that there may be an “opportunity for a potential middle ground,” therefore keeping an Overweight rating.

Apple is a technology company known for its consumer electronics, software, and services.