We recently published a list of Jim Cramer’s December Portfolio: Top 10 Stocks to Watch. In this article, we are going to take a look at where Apple Inc (NASDAQ:AAPL) stands against other stocks to watch in Jim Cramer’s December portfolio.
Jim Cramer in a latest program on CNBC talked about the evolution of AI and how the technology has come from being ignored as “hype” to now completely changing everyday lives for many. Cramer mentioned the AI solutions offered by Marc Benioff’s company and said the technology is actually exceeding expectations “dramatically.” [read Marc Benioff’s latest comments here]
Cramer mentioned the comments of Benioff on his company’s new AI-powered solutions:
“Suddenly, though, we have Agent Force, and with it, Marc said, I quote, “We’re unleashing this new year of digital labor force for every business and every industry.” He went on to say, quote, “The implications are just simply profound. Now people ridicule me for saying how much we need AI, but Marc says, quote, ‘For decades, economic growth depended on expanding the human workforce. It was all about getting more labor,’ end quote. Not anymore—not with agents powered by AI who, as you’re stating, can work faster, doing tedious things but essential jobs that nobody wants.
For this article, we watched some latest programs of Jim Cramer and picked 10 stocks he was talking about. With each stock we have mentioned the number of hedge fund investors. 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Jim Cramer Says ‘Just Own’ Apple (AAPL) Stock Amid Elongated iPhone Upgrade Cycle
A wide view of an Apple store, showing the range of products the company offers.
Number of Hedge Fund Investors: 158
In a recent program on CNBC, Jim Cramer talked about a Morgan Stanley note on Apple Inc (NASDAQ:AAPL) that discussed how the Cupertino company’s stock could move higher than Nvidia’s. Cramer reiterated his old mantra of staying invested in Apple.
“I think the iPhone upgrade cycle is elongated. This has been my plan for why you’ve got to stay with Apple Inc (NASDAQ:AAPL). Don’t trade Apple; just own Apple, because it’s going to be elongated. And David, the big final thing is competition—a lessening headwind to iPhone demand in China, where Tim Cook is now. China has just been a gigantic headwind.”
Recently, Apple Inc (NASDAQ:AAPL) reclaimed a top-5 position in China’s smartphone market, with its 15.6% market share still down from last year, especially against Huawei, which surged with over 40% growth. Xiaomi also continues to challenge Apple Inc (NASDAQ:AAPL)’s competitive edge. Notably, the iPhone 16 had only about three weeks of Q3 sales, yet didn’t lift Apple Inc (NASDAQ:AAPL)’s market share for the quarter, despite expectations for initial sales to be strong.
Mar Vista Strategic Growth Strategy stated the following regarding Apple Inc. (NASDAQ:AAPL) in its Q3 2024 investor letter:
“Apple Inc. (NASDAQ:AAPL) stock was strong in the quarter as investors viewed the company’s generative AI roadmap and iPhone 16 product cycle positively. The market was reminded of the strength of the Apple ecosystem as management demonstrated how generative AI solutions would be integrated into its iOS 18 operating system, which was broadly released in the iPhone 16 late in calendar Q3. We believe Apple’s generative AI-enabled products should spur a meaningful iPhone upgrade cycle and create new avenues of monetization through its app store and advertising offerings. We believe this will support intrinsic value growth that will range between high single digits and low double-digits over our investment horizon.”
Overall, AAPL ranks 1st on our list of stocks to watch in Jim Cramer’s December portfolio. While we acknowledge the potential of AAPL, our conviction lies in the belief that under the radar 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 thecheapest AI stock.
