"Among all the mega-cap tech stocks in the U.S. market I've largely ignored for most of the past year, Apple ( NASDAQ:AAPL) is the first company that comes to mind. Much of that perspective has to do with Apple's slowing growth rate (with negative growth reported in a number of the company's past quarters) as well as its seeming lack of an AI strategy. Or, at least, a coherent one."
"Apple has lagged other high-growth mega-cap tech stocks on the basis of its slower growth and less AI exposure. However, I have noticed a meaningful shift in sentiment (in a positive way) toward Apple of late, as investors look for companies that are likely to produce meaningful cash flow growth, but won't burden their investors or balance sheets with tons of AI-related debt or CapEx."
"Looking at the broader Magnificent 7 grouping of mega-cap tech stocks, the hundreds of billions of dollars that are being earmarked by just a few companies to expand their AI offerings and invest in the compute necessary to power what they see as a race for AI dominance has benefited specific chip companies such as Nvidia ( NASDAQ:NVDA), now the largest company in the world."
Apple has experienced slowing revenue growth and reported negative growth in several recent quarters. The company appears to lack a coherent AI strategy compared with other mega-cap peers. Investor sentiment is shifting toward companies offering meaningful cash-flow growth without heavy AI-related debt or capital expenditures. Large AI investments by some tech giants have benefited chip makers like Nvidia. Companies building AI applications face pressure to manage compute costs. Apple's proprietary chip development, and its first-mover status, provide strong device performance metrics and reduce reliance on external AI compute spending, supporting a stable-growth investment thesis.
Read at 24/7 Wall St.
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