This Beaten-Down “Magnificent Seven” Stock Could Start Soaring Thanks to Artificial Intelligence (AI)

Technology stocks have had a mixed start in 2024, with the Nasdaq-100 index up 5% but Apple (NASDAQ: AAPL) down over 10%. While Apple’s growth has slowed due to lack of AI advancements, other tech giants like Meta Platforms, Nvidia, and Microsoft are thriving in the AI space.

Despite Apple’s recent struggles, there is potential for growth in two key areas. The company is set to introduce AI-capable processors in its Mac lineup, which could drive stronger-than-expected growth. Market research suggests that AI-capable PCs will dominate the market in the coming years, presenting a significant opportunity for Apple.

Additionally, AI integration in future iPhone models could lead to a robust upgrade cycle, similar to the 5G launch. Analysts predict a surge in iPhone sales driven by AI features, offering long-term growth prospects for the company.

At a valuation of 26 times trailing earnings, Apple is trading at a discount compared to the tech sector benchmark. Analysts have set a median price target of $200 for the stock, indicating potential gains for investors. With AI-focused initiatives in the pipeline, now might be a good time to consider investing in Apple.

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