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Apple’s (AAPL) Strong Fundamentals Already Priced In, Analysts Say

Apple Inc. (NASDAQ:AAPL) is one of the AI Stocks Making Waves on Wall Street. On January 2, Raymond James analyst Srini Pajjuri resumed coverage on the stock with a Market Perform rating and no price target. The rating marks a step down from the Outperform rating that the stock held prior to coverage suspension.

The firm remains neutral on the stock, noting Apple’s strong fundamentals already reflects in the stock price.

“We are resuming coverage of Apple with a Market Perform rating. Despite strong fundamentals and improving product cycles, we believe Apple’s current valuation appropriately reflects these strengths, limiting near-term upside.”

Firm analysts acknowledged how Apple flaunts leadership in consumer hardware, ecosystem, and services, with a “highly sticky value proposition.” However, they believe that much of this value is already understood by investors.

Pixabay/Public Domain

Moreover, the tech giant’s installed base, now standing at an estimated 2.4 billion, will make incremental gains from tech upgrade cycles harder to attain.

“The relative success of the iPhone 17 refresh cycle has likely driven much of the recent share gains, and while we don’t discount the value generated by this growth (likely exceeding $217 billion in CY25), with a valuation several turns above the 5-year average P/E, we remain on the sidelines at this time.”

Analysts also noted how services are an important revenue contributor, but that Apple’s overall performance remains closely tied to hardware sales, especially the iPhone. Meanwhile, near-term catalyst don’t seem robust enough to drive outperformance in their coverage universe.

Overall, Apple’s current valuation is an appropriate estimation of its business profile, noted the analysts.

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: 10 AI Stocks Investors Are Watching and 10 Best AI Stocks to Buy Under $50

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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