Apple (AAPL) shares are rising to intraday highs as investors digest the tech giant’s newly announced AI initiatives. Needham senior media and internet analyst Laura Martin joins Market Domination to discuss Apple’s AI play as it enters the game relatively late.
Martin explains that Apple "is really uninteresting as a stock unless they’re going to use generative AI to drive an iPhone replacement cycle, and iPhones are over 50% of their total revenue. And I just didn’t hear that yesterday. So that means I didn’t change my estimate." She reiterates her projection that Apple’s revenue will grow 1%.
However, the analyst maintains a Buy rating on the stock, stating, "as a shareholder, you want to be in Apple this year while they’re returning share cash to you. But in four years, you don’t want to be anywhere near the stock because it’s going to be in a strategic box. Whereas these other companies that have already spent the money four years from now are going to be sort of riding the big wave of generative AI innovation."
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