10 Worst Blue Chip Stocks to Buy

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1. Apple Inc. (NASDAQ:AAPL)

Number of Hedge Fund Holders: 166

% Decline on a YTD Basis: ~18.7%

Wamsi Mohan, an analyst from Bank of America Securities, recently reiterated a “Buy” rating on Apple Inc. (NASDAQ:AAPL)’s stock. The analyst’s rating is backed by a combination of factors, including its recent fall in stock price on a YTD basis. The analyst has highlighted the company’s stable cash flows and earnings resiliency, together with potential benefits from AI advancements. Furthermore, despite geopolitical worries and tariff risks, Apple Inc. (NASDAQ:AAPL) possesses strategies to mitigate risks, like diversification of the supply chain and adjustment of pricing strategies.

Elsewhere, Citi analyst Atif Malik maintained a “Buy” rating on the company’s stock, setting a price objective of $240.00. This rating is backed by a combination of factors reflecting Apple Inc. (NASDAQ:AAPL)’s strategic positioning and future growth potential. One of the key reasons is the company’s proactive approach to diversifying search engine partnerships. This is evident from its discussions with several AI providers for the integration of AI search features into Safari, says the analyst. Furthermore, the integration of AI search providers can offer new revenue-sharing opportunities.

Columbia Threadneedle Investments, an investment management company, published its Q4 2024 investor letter. Here is what the fund said:

“The fund maintained a position in Apple Inc. (NASDAQ:AAPL) throughout the quarter through the release of the company’s new iPhone 16 in September. Company leaders were excited about the release of the new model, as this is the first model that will feature enhanced AI capabilities through the Apple Intelligence features. Sales for the first few weeks in October and November trailed behind year over year sales from the iPhone 15, as availability of Apple Intelligence was not compatible with all iPhone models. Apple announced a partnership with OpenAI that has allowed the integration of ChatGPT into the Apple ecosystem, separate from the core Apple Intelligence features. This partnership highlights continued progress from Apple to introduce AI capabilities into its products and we expect the iPhone 17 to have even more expansive AI capabilities, increasing potential demand for the new model that is on track to be released in 2025.”

While we acknowledge the potential of AAPL as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for a deeply undervalued AI stock that is more promising than AAPL but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and investors. Please subscribe to our daily free newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.

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