Here’s Why Warren Buffett and Ken Griffin Love Apple (AAPL)

We just covered the 10 Best Stocks to Buy According to Billionaire Ken Griffin. Apple (NASDAQ:AAPL) ranks #5 (see the Best Stocks to Buy According to Ken Griffin).

Ken Griffin’s Stake Value: $1,500,827,597

Apple is gaining favor on Wall Street after previously being dismissed as an AI laggard. The biggest vote of confidence recently came from Warren Buffett, who openly said in a CNBC interview that he sold Apple shares “too soon.” Apple remains Berkshire Hathaway’s largest holding.

“Well, I sold it too soon,” Buffett recently said. “But I bought it even sooner. So, it worked.”

Wedbush Maintains Bullish View on Apple (AAPL) despite AI Delay Concerns

Two factors had been weighing on Apple’s stock: first, declining iPhone sales, which remain its bread and butter; and second, the lack of a clear AI strategy.

Wall Street was extremely skeptical of Apple’s (NASDAQ:AAPL) AI strategy until concerns over increasing data center spending and ROI started popping holes in the AI hype, making the Cupertino giant’s approach look increasingly prudent. Apple (NASDAQ:AAPL) spent just about $12.7 billion in CapEx last year, while major tech companies like Microsoft, Google, Meta and Amazon are expected to spend about $600 billion combined on AI infrastructure in 2026.

What about the concerns about declining iPhone sales? Earlier this year, Apple (NASDAQ:AAPL) issued a higher-than-expected revenue growth guidance for the March quarter driven by a rebound in iPhone demand. But let’s face it: Analysts are now coming to terms with the reality that iPhone sales are unlikely to keep delivering strong growth as users may not upgrade as frequently.

Apple (NASDAQ:AAPL) anticipated this shift and began diversifying into services and other higher-margin business segments. As of the fiscal Q1, Apple’s Services revenue reached an all-time record of $30 billion, accounting for about 21% of total revenue. Services gross margins are about 76%,  nearly double the 40.7% margin seen on physical products. With an installed base of 2.5 billion devices, Apple (NASDAQ:AAPL) is positioned well to keep making money despite a potential plateau in iPhone sales.

Apple ranks fifth in our list of the best stocks to buy according to billionaire Ken Griffin.

RiverPark Large Growth Fund explained in its investor why Apple remains among the world’s most resilient and profitable businesses. Click here to read the full text of the letter.

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.

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