Analyst Explains Why He Sold Apple (AAPL) Shares – ‘I’ve Seen The Exhaustion’

We recently published 10 Buzzing AI Stocks to Watch in September. Apple Inc. (NASDAQ:AAPL) is one of the stocks to watch in September.

Joe Terranova, senior managing director at Virtus Investment Partners, said in a program on CNBC on August 20 that he trimmed his stake in Apple. Here is how the analyst explained the move:

“It’s not a portfolio type position. So, I’ve been riding the momentum higher. I’ve been buying high, continuing to buy it higher. I started at 206. I bought it all the way up to 232. I spoke each time on air when I bought it and I said, I’m going to manage the risk when I think I see the exhaustion. I think I’ve seen the exhaustion. It got to about 235, 236. It looks like that’s a temporary ceiling. I think it will go through there eventually and go back towards 240–245. But in the near term, the smart thing to do was ring the register, take a little profit, reduce the size. I cut the position in half. I have no problem with that.”

Baron Opportunity Fund stated the following regarding Apple Inc. (NASDAQ:AAPL) in its second quarter 2025 investor letter:

“Apple Inc. (NASDAQ:AAPL) is a leading manufacturer of consumer electronics, computer software, and online services. Shares declined amid mounting headwinds, including new U.S. tariffs on Apple’s China centric supply chain, which are pressuring gross margins, and increased regulatory scrutiny of the App Store model in both the U.S. and Europe. These developments have introduced greater uncertainty around the growth and profitability of Apple’s high margin services business. While we continue to admire Apple’s brand, ecosystem, and long-term innovation capabilities, the ongoing regulatory overhang and heightened risk to margins and growth prospects led us to exit the position and reallocate capital to holdings with more compelling risk/return profiles.”

While we acknowledge the risk and potential of AAPL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AAPL and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.