Apple (AAPL) Fell Amid Investor Concerns Over AI Development

Wedgewood Partners, an investment management company, released its second-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the second quarter, Wedgewood Composite’s net return was 7.1% compared to the Standard & Poor’s 10.9%, the Russell 1000 Growth Index’s 17.8%, and the Russell 1000 Value Index’s 3.8% return for the same period. In addition, you can check the fund’s best 5 holdings to know its best picks in 2025.

In its second quarter 2025 investor letter, Wedgewood Partners highlighted stocks such as Apple Inc. (NASDAQ:AAPL). Apple Inc. (NASDAQ:AAPL) is an American multinational company that designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories. The one-month return of Apple Inc. (NASDAQ:AAPL) was 4.49%, and its shares lost 6.37% of their value over the last 52 weeks. On July 17, 2025, Apple Inc. (NASDAQ:AAPL) stock closed at $210.02 per share with a market capitalization of $3.137 trillion.

Wedgewood Partners stated the following regarding Apple Inc. (NASDAQ:AAPL) in its second quarter 2025 investor letter:

“Apple Inc. (NASDAQ:AAPL) detracted from performance after investors became impatient with the Company’s AI development efforts – particularly the promises made but promises not kept with Siri integrated with AI. It is much too early to conclude that Apple cannot succeed in developing a compelling AI-assisted offering for its device and software ecosystem. For decades, Apple’s proprietary hardware and software have enabled the Company to consistently provide unmatched user experiences that consumers increasingly rely on a daily basis. Whether Apple – with their unmatched installed base of over a billion user devices – develops its AI with eager partners or over a slightly longer timeframe than what investors hoped for does not change the Company’s core competitive differentiation that comes from years of integrating custom silicon with internal operating system software.”

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An Apple store displaying the latest in consumer electronics, from smartphones to wearables.

Apple Inc. (NASDAQ:AAPL) is in 8th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 159 hedge fund portfolios held Apple Inc. (NASDAQ:AAPL) at the end of the first quarter, which was 166 in the previous quarter. While we acknowledge the risk and potential of IQV 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 IQV and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Apple Inc. (NASDAQ:AAPL) and shared the list of stocks that Jim Cramer recently discussed. In its Q2 2025 investor letter, Mar Vista U.S. Quality Premier Strategy shared its optimism in Apple Inc.’s (NASDAQ:AAPL) strong position in leading the development of AI-enabled edge devices. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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