5 Best Artificial Intelligence Stocks To Buy Now

In this article, we discuss 5 best artificial intelligence stocks to buy now. If you want to read the introduction and detailed analysis of the artificial intelligence market, go to 11 Best Artificial Intelligence Stocks To Buy Now.

5. Apple Inc. (NASDAQ:AAPL)

Number  of Hedge Fund Holders (Q1): 131

Apple Inc. (NASDAQ:AAPL) is the world’s biggest company by market capitalization as of June 2022. It is one of the Tech Giants of IT. Apple Inc. (NASDAQ:AAPL)’s Siri was launched in 2011 and was the first widely used AI and NLP-powered assistant. Moreover, Apple chipsets use AI algorithms to understand the world around them.

For Q2 2022, Apple Inc. (NASDAQ:AAPL) reported an EPS of $1.20, outperforming the estimates of $1.16, and generated a revenue of $82.9 billion which was in line with the estimates. Through the quarter, the company generated a free cash flow of $20.79 billion. The free cash flow margins were recorded at 25.1%. The company exited the quarter with cash and cash equivalents of $28.86 billion with an inventory of $5.43 billion. Moreover, while global smartphone sales dropped by 9% YoY, Apple Inc. (NASDAQ:AAPL)’s iPhone shipments increased by 8% YoY in the second quarter of 2022.

On August 16, Credit Suisse analyst Shannon Cross upgraded Apple Inc. (NASDAQ:AAPL) to Outperform from Neutral and boosted her price target to $201 from $166. The analyst noted that Apple’s “management focuses on high customer satisfaction by improving ease of use, product quality and continuity between devices.” She added that the company increased its dividend for the 10th consecutive year and further added to shareholder returns through $90 billion in share repurchases.

Here is what Wedgewood Partners had to say about Apple Inc. (NASDAQ:AAPL) in its Q2 2022 investor letter:

“Apple grew revenues +9%, driven by +17% growth in the Services segment. While iPhone revenues grew a modest +5%, it was on an exceptional year ago comparison of +66%. iPhone continues to capture most industry smartphone profits by focusing on high-end price tiers. Apple is taking nearly two-thirds of the revenue share in the premium ($400 and above) smartphone segment. Further, most of the growth was driven by expansion in the “ultra-premium” price tier of $1000 or more per unit.[1] As we have highlighted in the past, Apple’s relentless focus on the development and integration between hardware (especially integrated circuits) and software continues to add significant value for customers of its products and services. We expect this favorable competitive dynamic to continue for the foreseeable future.”