"Mad Money host Jim Cramer has made it pretty clear in the past that Nvidia ( NASDAQ:NVDA) was his favorite AI stock. Indeed, he went as far as to name his dog Nvidia to get the point across. And while Cramer is still fond of the stock and its legendary founder, Jensen Huang, Cramer has really sounded upbeat about shares of iPhone maker Apple ( NASDAQ:AAPL), which has dragged its feet relative to the other six members of the Magnificent Seven."
"With shares of the name getting slammed on the iPhone 17 keynote, only to gain back the ground and then some in the following sessions in response to hot demand for the device (the lineups are back and the Apple Store is packed), perhaps Apple might be the AI stock that has the most ground to run as it looks to close the gap with its rivals in the new year."
"Indeed, with the favorable judge ruling for Google of Alphabet ( NASDAQ:GOOG), Apple may still be able to go ahead to let AI model makers compete for a spot on the mighty iPhone. If anything, Google may need to pay Apple to have Gemini as a default model on its devices in the future, pretty much mirroring the search deal that's been in place for quite a while."
Apple has trailed other Magnificent Seven stocks year-to-date, with AAPL up just over 4% compared to larger gains among peers. The iPhone 17 keynote briefly pushed shares down, but robust consumer demand and long store lineups helped shares recover. The keynote showed limited AI features, leaving uncertainty about Apple’s AI approach. Market commentary suggests Apple need not outspend rivals to advance in AI; alternative paths include permitting third-party AI model competition for default placement on iPhones. Legal developments involving Google may make default model deals commercially feasible, potentially mirroring existing search revenue arrangements.
Read at 24/7 Wall St.
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