Delayed AI Software Rollout and Tariff Related Uncertainty Put Pressure on Apple (AAPL)

Aristotle Atlantic Partners, LLC, an investment advisor, released its “Large Cap Growth Strategy” second quarter 2025 investor letter. A copy of the letter can be downloaded here. The US equity market regained its strength following an early volatility, with the S&P 500 Index rising 10.94% during the period. In this environment, Aristotle Atlantic’s Large Cap Growth Strategy delivered -18.63% gross of fees (18.45% net of fees), outperforming the Russell 1000 Growth Index’s17.84% return. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Aristotle Atlantic Large Cap Growth 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 -2.80%, and its shares lost 5.59% of their value over the last 52 weeks. On July 31, 2025, Apple Inc. (NASDAQ:AAPL) stock closed at $207.57 per share, with a market capitalization of $3.1 trillion.

Aristotle Atlantic Large Cap Growth Strategy stated the following regarding Apple Inc. (NASDAQ:AAPL) in its second quarter 2025 investor letter:

“Apple Inc. (NASDAQ:AAPL) contributed to performance in the second quarter due to the underweight in the portfolio. Investors remain concerned by the delayed rollout of the company’s AI software and hardware strategy, which could see a lengthening of the handset upgrade cycle. Apple also faces headwinds to both sales and margins from China-related tariffs. Furthermore, continued uncertainty on the resolution of the U.S. trade strategy with China may keep investors on the sidelines.”

A busy sidewalk filled with people using Apple devices like iPhones, iPads and Apple Watches.

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 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 best stocks to buy for the next 6 months. 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.