Apple: Why I Sold The Generative AI Hype (Rating Downgrade)

Summary:

• Apple stock is trading near all-time highs amidst broader tech euphoria.
• The company continues to post solid growth, with services leading the way.
• Management guidance indicates minimal impact from the roll-out of generative AI.
• I explain why I am downgrading the stock as my short-term thesis has fallen apart.

Tech stocks appear to have returned to the 2021 euphoria, and thus this is a good moment to re-evaluate my buy rating on Apple (NASDAQ:AAPL). The company has been a beneficiary-albeit a mild one-of generative

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

I am long all positions in the Best of Breed Growth Stocks Portfolio.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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