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Apple Inc. (AAPL): How AI Innovations Could Shape the Next iPhone Upgrade Cycle

We recently published a list of 10 AI News Updates Investors Should Not Miss. In this article, we are going to take a look at where Apple Inc. (NASDAQ:AAPL) stands against other AI news updates investors should not miss.

“Deep Research” is the name of the AI tool OpenAI launched yesterday. According to the GenAI star startup, it can conduct multi-step research on the internet for complex tasks. Deep Research is powered by a version of the upcoming OpenAI’s o3 model which is optimized for web browsing and data analysis, as reported by Reuters.

This kind of technology is called an A.I. agent. AI agents can use other software on the internet, perform tasks, and learn from experience. It seems that artificial intelligence agents are going to be all the hype this year, as predicted by plenty of analysts and industry experts in the artificial intelligence world. Soon enough, there may be jobs that only AI agents could apply for.

“We’ve observed tangible progress, with the industry coalescing around the concept of AI ‘agents’ capable of executing a task on your behalf. At work, an agent could analyse customer purchase histories and automatically select and deliver personalized email promotions designed to boost sales”.

-US investment firm Franklin Templeton

READ NOW: These 29 AI Electricity and Infrastructure Stocks Are Crashing Due to DeepSeek News and 10 AI Stocks to Watch Amid the DeepSeek Buzz

OpenAI said that all users have to do is give it a prompt which will enable OpenAI’s chatbot ChatGPT to find, analyze, and synthesize several online sources, be it text, images, or PDFs, to develop a comprehensive report at the level of a research analyst.

“It accomplishes in tens of minutes what would take a human many hours”.

-OpenAI.

However, it does have limitations as it is still in its early stages.

“It may struggle with distinguishing authoritative information from rumors, and currently shows weakness in confidence calibration, often failing to convey uncertainty accurately.”

Currently, the AI tool is available on the web version of ChatGPT and will be rolled out to mobile and desktop apps within February. This is the second AI agent that OpenAI has launched this year, following Operator, a tool that can perform a variety of tasks such as creating to-do lists or assisting with vacation planning.

For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

A wide view of an Apple store, showing the range of products the company offers.

Apple Inc. (NASDAQ:AAPL)

Number of Hedge Fund Holders: 158

Apple Inc. (NASDAQ:AAPL) is a technology company known for its iPhones, iPads, and a range of other software, consumer electronics, and services. On February 1st, Maxim Group analyst Tom Forte maintained a “Hold” rating on the stock with a $215.00 price target. The firm asserts that Apple has some significant challenges ahead, but its potential for growth in Apple’s services sector offers some resilience against them. Moreover, there are some reservations about the performance of the iPhone segment and the company’s exposure to the Chinese market, which are seen as weaknesses for the company. Another factor adding to the uncertainty around the stock is the expected upgrade cycle due to AI advancements which is still unclear. These elements demonstrate both risks and promising opportunities for Apple, leading to a Hold rating.

Overall, AAPL ranks 2nd on our list of AI news updates investors should not miss. While we acknowledge the 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 timeframe. If you are looking for an AI stock that is more promising than AAPL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap

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

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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