Apple Inc. (AAPL) Gets Overweight Rating From JPMorgan Despite AI Delays
March 26, 2025
We recently published a list of the Top 10 AI Stocks on Investors’ Radar. In this article, we are going to take a look at where Apple Inc. (NASDAQ:AAPL) stands against other AI stocks that are on investors’ radar.
China’s artificial intelligence sector is evolving into a fiercely contested arena. It hasn’t been long since artificial intelligence startup DeepSeek introduced its low-cost yet efficient AI models, shaking up the tech world. Ever since, several other companies have joined in, intensifying the race. In the latest news, Chinese tech giant Tencent has launched the official version of its T1 reasoning model, marking a step forward in the nation’s accelerating AI push.
READ ALSO: 10 AI Stocks Catching Wall Street’s Attention and GTC Recap and Beyond: 10 AI Stocks on Investor’s Radar
According to The South China Morning Post, the new artificial intelligence (AI) reasoning model, Hunyuan T1, rivals DeepSeek’s R1 in performance and pricing. Tencent’s model leverages large-scale reinforcement learning, a technique which has also been employed by DeepSeek in its R1 reasoning model. According to the company, the upgraded T1 model features faster response times and improved capabilities for handling extended text documents.
T1 can “keep the content logic clear and the text neat and clean”, the post said, while the hallucination rate is “extremely low”.
The T1 has been officially released after the beta run of the T1 preview on Tencent’s chatbot Yuanbao. It scored 87.2 points on the Massive Multitask Language Understanding (MMLU) Pro benchmark, a test that thoroughly assesses large language models’ language comprehension and reasoning across diverse domains. The score beat DeepSeek-R1’s 84 points but trailed the 89.3 points achieved by OpenAI’s o1, according to South China Morning Post’s report.
Tencent has claimed to be the first in the industry to adopt a hybrid architecture combining Google’s Transformer and Mamba. This architecture has been developed by Carnegie Mellon University and Princeton University. According to the company, the hybrid approach “significantly reduces training and inference costs” by cutting memory usage.
The company further praised T1 as “significantly reducing resource consumption while ensuring the ability to capture long text information”. T1 offers a 200 percent increase in decoding speed.
For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds. The hedge fund data is as of Q4 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Number of Hedge Fund Holders: 166
Apple Inc. (NASDAQ:AAPL) is a technology company. One of the most notable analyst calls on Friday, March 21, was for Apple Inc. JPMorgan reiterated the stock as “Overweight,” calling Apple “defensive”. The firm also said it has “cyclical drivers.”
“We expect product cycle drivers in the form of iPhone 16E as well as iPad and Mac refreshes to support upside and/or resilience to revenue and earnings, in contrast to the negative sentiment recently relative to delays in AI Siri launches, which are less impactful to near- to medium-term estimates.”
Analysts on Wall Street currently have a consensus “Buy” rating on the stock. The average price target of $255 implies a 16.8% upside, however, the Street-high target of $325 implies an upside of 48.9%.
Overall, AAPL ranks 3rd on our list of AI stocks that are on investors’ radar. While we acknowledge the 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 but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires
Disclosure: None. This article is originally published at Insider Monkey.
Terms and Privacy Policy
Search
RECENT PRESS RELEASES
Related Post
