Jim Explains Why "Apple Simply is Not a Beneficiary of Lower Rates"

Apple Inc. (NASDAQ:AAPL) is one of the stocks Jim Cramer discussed after the Fed rate cut. Cramer noted that the company has an “immense cash position,” as he commented:

“Apple’s not really impacted by lower rates. It has an immense cash position. It’ll probably earn less on its cash. It’s considered an AI loser even though I think their installed base of over 2.3 billion devices and 1.5 billion users means one of these big chatbots will pay them a fortune to be the default platform, just like Google did with search. The long knives are always out for Apple. But if we all think that the hyperscalers are spending too much money on data centers… then how the heck can we chide Apple for not doing much at all of spending on data centers?

If OpenAI were to pay Apple $25 billion a year to be its default AI choice, it might be the greatest free rider case in history. If Gemini were to do it… with today’s Alphabet stock already red hot, that would go up another 50 points. All that said, Apple simply is not a beneficiary of lower rates. And when you’re within a day of a rate cut, it’s not the kind of stock money managers have any interest in. Apple’s a momentary yawner and an underperformer as people sell Apple to move into these industrials and these banks, the other stocks I talked about, like maybe the retailers. That’s just what’s happened. It’s happened no matter what.”

Apple Inc. (NASDAQ:AAPL) manufactures and sells devices such as the iPhone, Mac, iPad, along with its line-up of wearables and accessories. The devices are supported by the company’s app ecosystem, AppleCare, and cloud tools.

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.

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Disclosure: None. This article is originally published at Insider Monkey.