Could This $6 AI Stock Make You 100X Richer?
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Based on our research, we are at the starting point of the “Next Big Thing.” Bigger than 5G… electric cars… streaming media… and crypto. COMBINED. We're talking about a far BIGGER, $150 trillion opportunity. Folks like Bill Gates, Jeff Bezos, and Warren Buffett are singing the praises of Artificial Intelligence. And while everyone is talking about ChatGPT and NVIDIA… The real opportunity centers on an under-the-radar $6 AI Wonder Stock no one is talking about. We have reason to believe its share price could go ballistic in the coming days and weeks. Will it go up by 10… 25… even 50 times? Time will tell. Click here to get our No 1 AI investment recommendation of the decade.
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Investors are worried over declining iPhone sales at Apple (AAPL 4.49%) — reported to be down 9% in the U.S. in February, and twice that in China. They are also worried that Apple's lack of a homegrown artificial intelligence product could seriously damage Apple's share price this year. Together those worries go some way to explaining why share prices of the iPhone maker are down about 13% since the start of 2024.
But not all hope is lost. Bank of America analysts still think Apple stock is a buy and could rise as much as 34% to hit $225 within a year.
Is Apple stock still a buy?
Why does BofA believe Apple stock is a buy? In a note out Tuesday, the investment bank cited a 10% rise in Q2 sales at the App Store as a reason to own Apple stock. March data look particularly good, with global App Store sales up 13% (although only up 7% in China).
App Store sales — and sales of other services, as opposed to hardware — may be key to Apple's growth rate going forward. On the one hand, Apple had the largest market share of any phone maker globally in Q4, and globally, its phones dominate with 1.5 billion iPhones in use. On the other hand, by this point, anyone who wants an iPhone probably already has one, limiting further hardware growth to sales of replacement iPhones, and new devices yet to be invented. Sales of services such as apps, on the other hand, aren't limited in the same way hardware sales are and could continue growing.
The bad news, though, is that most analysts forecast Apple's earnings growth over the next five years will average only about 10% per year — or essentially the same growth rate BofA just cited for App Store sales. This reinforces the impression that Apple is no longer a high-growth stock. If “10%” is the best growth rate we can expect from Apple going forward, it's a very real question whether investors should continue to pay more than 26 times earnings for Apple stock.
NVDA's biggest threat is trading for just $2
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Investors are focusing on the wrong thing. While all the attention is focused on AI, the trend hidden under the surface has nothing to do with it. And one company has a chip that could outright beat NVDA's in the coming months and hand investors absurd gains in the process… My conviction level on this play it as at an all-time high. 2 FANMAG companies are racing to capture this innovation, but they will need this $2 stock's patented “key” before those companies can scale this technology where they want to. So click here and find out why this $2 stock is unlikely to be $2 for very long.
