Apple Inc. (NASDAQ:AAPL) is one of the 10 AI Stocks Making Waves on Wall Street. On January 30, JPMorgan analyst Samik Chatterjee raised the price target on the stock to $325 while reiterating an “Overweight” rating. The firm is confident on the stock as it sees AAPL’s results as reassuring for investors.
According to the firm, Apple’s latest financial results should help “calm investor nerves” about memory-related impacts on gross margins and concerns regarding a Services slowdown. This is despite the magnitude of iPhone revenue upsides, which is “noteworthy” itself.
JP Morgan also highlighted Apple delivering “record Product gross margins” in the December quarter, with the March quarter also anticipated to show record product gross margins.
This, the firm believes, should help investors be reassured regarding the materiality of the impact that investors have been concerned about related to rising memory costs.
“Record Product gross margins in the Dec-Q and an implied Mar-Q record Product gross margin should help reassure investors around the materiality of the impact that investors have been concerned about in relation to rising memory costs, even though management acknowledged slightly higher impact in Mar-Q than the Dec-Q.”
Apple is a technology company known for its consumer electronics, software, and services.
While we acknowledge the potential of AAPL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.
Disclosure: None. This article is originally published at Insider Monkey.
