Apple (AAPL) Rebounded as Investors’ Concerns Eased

Mar Vista Investment Partners, LLC, an investment management company, released its “Mar Vista U.S. Quality Strategy” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The third quarter was a standout period for US equities, led by optimism over the Federal Reserve’s dovish pivot and the ongoing boom in artificial intelligence (AI). The S&P 500® Index and the Nasdaq Composite surged, representing technology’s relentless momentum.  In the quarter, the strategy returned +3.29% net of fees, compared to +8.00% and +8.12% returns for the Russell 1000 Index and the S&P 500 Index, respectively. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Mar Vista U.S. Quality Strategy 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 13.79%, and its shares gained 12.42% of their value over the last 52 weeks. On October 8, 2025, Apple Inc. (NASDAQ:AAPL) stock closed at $258.06 per share, with a market capitalization of $3.83 trillion.

Mar Vista U.S. Quality Strategy stated the following regarding Apple Inc. (NASDAQ:AAPL) in its third quarter 2025 investor letter:

“Apple Inc. (NASDAQ:AAPL) shares rebounded in Q3 2025 as investor concerns over both tariffs and the early adoption of its generative AI product, Apple Intelligence, eased. Attention shifted instead to the favorable resolution of Alphabet’s DOJ trial, seen as a positive for both Apple and Alphabet, and to healthy initial demand for the fall launch of the iPhone 17.

We continue to view Apple as a competitively advantaged business, anchored by the strength of its ecosystem. With over 2 billion active devices and more than 1 billion paying subscribers, Apple benefits from a loyal customer base and a growing stream of high-margin, recurring services revenue. This stable cash flow enables continued investment in innovation, even during periods of cyclical softness. We believe Apple remains well positioned to lead in the emerging category of AI-enabled edge devices.”

Apple Inc. (NASDAQ:AAPL) is in 8th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 156 hedge fund portfolios held Apple Inc. (NASDAQ:AAPL) at the end of the second quarter, which was 159 in the previous quarter. Apple Inc. (NASDAQ:AAPL) reported revenue of $94 billion in the June quarter, reflecting a 10% year-over-year increase. While we acknowledge the risk and potential of Apple Inc. (NASDAQ: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 Apple Inc. (NASDAQ:AAPL) 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 everyone’s talking about as AI investments continue. In addition, please check out our hedge fund investor letters Q3 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.