A slump in Apple’s share price, coupled with the potential for AI upgrades to its iPhones, has led to the company attracting the attention of increasing numbers of hedge funds, according to a report by Bloomberg citing analysts at JPMorgan Chase & Co.
While Apple’s stock edged up slightly on Thursday, it is down around 13% so far this year, trailing the broader market by a significant margin, and the company is also headwinds including weak sales in China and a US Justice Department suit accusing the company of violating antitrust laws.
Apple is also regarded as trailing its peers in the development and delivery of artificial-intelligence offerings and the company has reportedly been looking for partners including Google to add AI features to its iPhones. According to JPMorgan that prospect is boosting investor sentiment.
In a research note on Thursday, JPMorgan analysts led by Samik Chatterjee wrote: “Hedge fund investors are increasingly warming up to the opportunity of the AI upgrade cycle,” although it’s not clear at this stage whether that will, happen later in 2024 or next year.
