Stock Market

Sometimes, even the biggest technology companies have an off year. Such was the case with Apple (NASDAQ:AAPL), as AAPL stock didn’t reward its owners with outstanding returns over the past month. However, this doesn’t mean a $1,000 investment in Apple is a lost cause, as there could be a share-price rally just around the corner.

It seems like everybody and their uncle has been chattering about artificial intelligence (AI) lately. It’s a hot topic, and there are new superstars like (NYSE:AI).

Where does this leave Apple, though? Will the company be left in the dust amid the machine learning revolution? Not at all, as Apple remains a tech innovator with AI connections you might not have considered.

Here’s What Happened to a $1,000 Investment in AAPL Stock

AAPL stock lost some ground during the past year, sinking from roughly $170 to $155 for a loss of approximately 9%. Thus, a $1,000 investment in Apple stock a year ago would have been reduced to around $910.

That’s disappointing since Apple is a strong performer during most years. Still, at least the company’s shareholders have collected dividend payments along the way.

Besides, other tech firms have fared worse than Apple. That’s because, among other factors, Apple didn’t over-hire during the post-Covid-19 technology boom. Because Apple was relatively cautious, the company doesn’t have to implement mass layoffs now.

Bear in mind, every company is going to have a “bad” year, and 2022 wasn’t really all that bad for Apple. It’s possible that AAPL stock just needed to take a breather in preparation for a potential run-up this year.

Apple Has an AI Connection You Might Have Missed

Nevertheless, there are doubters (check any popular financial message board, and you’ll see) who don’t think AAPL stock will get its mojo back in 2023. Perhaps they’re worried that Apple is missing out on red-hot machine learning trends, such as the emergence of OpenAI’s ChatGPT chatbot program.

Yet, Apple doesn’t need to have conversational/generative AI programs to participate in the AI revolution. As Neuberger Berman senior analyst Dan Flax explains, “Apple infuses AI throughout its products as well.”

Apple is still a trailblazer in hardware and software, so the company doesn’t have to specialize in generative AI. “What’s going on across the company is they’re innovating in iPhone, Mac, iPad, wearables,” Flax states.

Moreover, Apple is also an innovator in its Services division. “Services remains a very, very interesting business and continues to grow” for Apple, Flax observes.

What You Can Do Now

Just because Apple doesn’t specialize in conversational AI, doesn’t mean the company will become a dinosaur. In actuality, Apple integrates machine learning into its products and continues to develop cutting-edge smartphones, computers, wearables and more.

So, don’t give up on AAPL stock just because a $1,000 investment hasn’t yielded satisfactory results yet. The next 12 months could reward Apple’s loyal shareholders with unexpectedly robust returns, so stay the course with this tech titan.

On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

David Moadel has provided compelling content – and crossed the occasional line – on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga, and (of course) He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.

Articles You May Like

7 Dividend Stocks to Buy Now: June 2024 
2 High-Yield Value Stocks to Buy and One to Boot
3 Stocks to Sell Faster Than the Market Can Say ‘Crash’
3 Dividend Growth Stocks to Buy Now: June 2024
How Worried Should PayPal Stock Investors Be About Apple’s Latest Fintech Moves?