12 Best QQQ Stocks to Invest in Now

6. Apple Inc. (NASDAQ:AAPL)

Number of Hedge Fund Holders: 166

Apple Inc. (NASDAQ:AAPL) is a technology company that designs, manufactures, and markets consumer electronics like iPhones, Macs, iPads, and wearables. It also offers software and services, such as the App Store, AppleCare, and cloud services. Its subscription-based offerings include Apple Music and Apple TV+.

On March 6, Goldman Sachs analyst Michael Ng reiterated a Buy rating for the company with a $294 price target due to the unveiling of new Mac products. The firm expects these products to support the company’s FQ2 2025 revenue growth outlook of low-to-mid-single digits. Specifically, the MacBook Air, with its $100 lower launch price, is expected to benefit from the PC refresh cycle. The new 13- and 15-inch MacBook Air models, which were revealed on March 5, feature the M4 chip, AI features, up to 18 hours of battery life, and a 12MP Center Stage camera.

The company’s consumer electronics segment is supported by its Mac lines. In FQ1 2025, Mac revenue surged to $9 billion, which marked a 16% year-over-year increase. Customer satisfaction for Mac in the US remains high at 94%. Apple Inc. (NASDAQ:AAPL) is emphasizing its commitment to sustainability by highlighting the carbon-neutral Mac Mini. Overall product revenue for the company in FQ1 totaled $98 billion, which was a 2% year-over-year increase and was propelled by the growth in Mac sales.

At the same time, the company’s AI-powered iPhone 16 is expected to drive a major upgrade cycle and continued growth. Tsai Capital stated the following regarding Apple Inc. (NASDAQ:AAPL) in its Q4 2024 investor letter:

“We initiated our investment in Apple Inc. (NASDAQ:AAPL) in 2016 and elevated it to a core holding in 2018, the same year the company introduced its redesigned 13-inch and 15-inch MacBook Pro models. Under Tim Cook’s visionary leadership, Apple has consistently redefined innovation in hardware and software.

The September 2024 launch of the iPhone 16, with its groundbreaking AI capabilities, including enhanced image generation tools, marks another inflection point. We believe this transformative device is the foundation for an AI-driven supercycle and could entice approximately 100 million consumers to upgrade, reinforcing Apple’s leadership in the industry.

Today, Apple’s ecosystem spans over two billion active devices, supported by a rapidly-growing base of subscription services. This strategy has helped to turbocharge customer engagement and spending. In the most recent fiscal year, which ended in September 2024, Apple’s high-margin services division accounted for 39.3% of total gross profits, up from 32.8% just two years ago.

Apple’s financial footing remains exceptional, with approximately $50 billion in net cash and marketable securities. Looking ahead, we expect earnings-per-share growth to outpace revenue growth, driven by margin expansion and continued share buybacks.”