10 Buzzing AI Stocks Analysts are Watching

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2. Apple Inc. (NASDAQ:AAPL)

Number of Hedge Fund Holders: 166

Apple Inc. (NASDAQ:AAPL) is one of the 10 Buzzing AI Stocks Analysts are Watching. On January 20, Goldman Sachs analyst Michael Ng reiterated a Buy rating on the stock with a $320.00 price target. The firm views APPL’s recent YTD drop as a buying opportunity, citing multi-year iPhone strength and Services mix.

The investment bank noted how Apple’s shares are down 5% YTD at the start of calendar 2026, likely due to commodity cost inflation and App Store concerns.  However, the recent weakness presents a buying opportunity as the iPhone refresh cycle continues.

Revenue for the iPhone is projected to grow 9% in both fiscal 2026 and 2027. Moreover, for the first quarter of fiscal 2026, the firm forecasts earnings per share of $2.66, in line with FactSet consensus. First-quarter iPhone revenue is likely to increase 13% year-over-year, fueled by 5% unit growth (including 26% growth in China) and 8% stronger price and mix.

Goldman Sachs noted how future iPhone demand is going to be positively impacted by a foldable iPhone in late 2026, a shift to a biannual iPhone launch cycle, and new software upgrades.

iPhone demand in the next 2 years is likely to benefit from the iPhone Fold (Fall 2026, 4.5/25.4 mn units in F2026/F2027), the shift to a biannual iPhone launch cycle with the iPhone 18 base and iPhone Air 2 delayed from Fall 2026 to Spring 2027, and new software upgrades with iOS and Siri 2.0.

Even though App Store spending growth decelerated again to 7% year-over-year in the first quarter, the firm forecast overall Services revenue to grow 14% driven by momentum in other categories including traffic acquisition costs, iCloud+, and AppleCare+. Further tailwinds in F2026 are expected from new ad formats in the App Store.

Goldman Sachs further noted how product price/mix growth and continued mix shift toward Services are likely to support gross margins, which will help offset potential headwinds from memory cost inflation.

Apple’s recent partnership with Google Gemini and continued iPhone demand growth are also seen to reinforce AAPL’s position as a consumer device of choice.

Apple’s partnership with Google Gemini for Siri and continued iPhone demand growth against the backdrop of AI-native consumer hardware launches should demonstrate to the market that the iPhone will remain the consumer device of choice for accessing new AI tools, clearing overhangs related to competition.

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

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