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Apple (AAPL) Delivers Solid Beat — Jefferies Softens Bearish Stance

Apple Inc. (NASDAQ:AAPL) is one of the AI Stocks on the Market’s RadarOn October 31, Jefferies upgraded the stock rating from “Underperform” to “Hold” while raising its price target to $246.99 from $203.07.

The rating upgrade follows Apple’s September quarter revenue growth of estimated 8%, topping both Jefferies estimates and consensus expectations by 6% and 1% respectively.

The iPhone’s revenue growth was weaker at 6%. However, other products, including Mac and iPad outperformed expectations. The company’s gross margin of 47.2% beat estimates by an estimated 0.5% even though it faces $1.1 billion in tariff costs.

Looking ahead, it has guided for 10%-12% revenue growth in the December quarter, 6% above consensus forecasts.

According to the firm, estimates are “up only slightly” because it assumes a $100 price increase for the iPhone 18 to cover higher component costs.

This will likely limit volume growth, it noted. The firm also believes that product mix will likely negatively impact margins.

“AAPL’s Sep Q rev grew ~8%, 6%/1% > JEFe/cons. iPhone rev growth weaker at 6%, but other products (Mac & iPad) beat. GM at 47.2% is ~0.5% beat including US$1.1bn tariff. It guides 10%–12% rev growth in Dec Q (6% > cons). JEFe is up only slightly, as a US$100 price hike assumed for iPhone 18 to cover higher component costs will limit vol growth, and product mix likely –ve for margin. But strong 1QFY26 and hope for 18 Fold would likely limit downside. U/G to HOLD.”

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

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.

READ NEXT: 11 Must-Watch AI Stocks on Wall Street and 10 AI Stocks in the Spotlight This Week.

Disclosure: None.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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