Apple (AAPL) Faces a New Kind of Rival - And Wall Street Is Paying Attention

We recently published a list of 10 AI Stocks on Wall Street’s Radar. In this article, we are going to take a look at where Apple Inc. (NASDAQ:AAPL) stands against other AI stocks on Wall Street’s radar.

Apple Inc. (NASDAQ:AAPL) is a technology company known for its consumer electronics, like iPhones and MacBooks. One of the most notable analyst calls on Friday, May 23, was for Apple Inc. Evercore ISI reiterated the stock as “Outperform.” The firm said it’s sticking by the stock despite several uncertain issues.

Macroeconomic headwinds and shifting consumer behavior have led to persistent concerns about Apple’s Services segment and Gross Margins. The analyst also highlighted the evolving relationship between Apple and OpenAI, where OpenAI will acquire the AI device startup co-founded by Apple veteran Jony Ive in an estimated $6.5 billion all-stock deal.

The deal adds Ive and approximately 55 hardware engineers to OpenAI’s team, seemingly a part of a generational technology shift. Even Gene Munster, Managing Partner at Deepwater Asset Management, has warned that OpenAI represents the first serious competitive threat to Apple.

“Before AI, there was no real threat to Apple’s or Google‘s business,” he noted, emphasizing that OpenAI is “catalyzing this shift into something tangible.”

-Gene Munster

“AAPL – No End To Pain: While worries on Services and GMs [gross margin] remain, the recent issues have been around OpenAI and the impact of Jonny Ive moving there as another risk specially over the medium term.”

Analysts on Wall Street currently have a consensus “Buy” rating on the stock. The average price target of $235 implies a 20% upside, however, the Street-high target of $308 implies an upside of 57.7%.

Overall, AAPL ranks 5th on our list of AI stocks on Wall Street’s 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 have limited downside risk. If you are looking for an AI stock that is more promising than AAPL and that has 100x upside potential, check out our report about this cheapest AI stock.

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