The rise of artificial intelligence has boosted the price of technology giants such as Nvidia, Microsoft and Apple. The company’s shares rose after the announcement of new AI functionalities integrated into its devices. However, the multinational founded by Steve Jobs has announced the suspension of the arrival of these new products in Europe due to regulation. A few days before, it had received a complaint from the European Commission due to non-compliance with the new digital rules of the European Union.
Despite this decision, the management team Jupiter Asset Management He believes that the Cupertino company has a good chance of achieving a good position in the artificial intelligence race. “While we can’t predict the outcome of the AI race, we can say that the next few years will be crucial in separating the winners from the losers. Apple may be slow to get off the ground, but There are many aspects of your business that could be advantageous in the long term.“, he pointed out Amadeo Alentornhead of systematic equities at Jupiter AM, in a comment sent to the media.
“The company has a robust balance sheet with a significant amount of cash at its disposal. Its management team has a long history of making smart decisions that focus on long-term value for shareholders,” added Alentorn.
Apple shares have seen a revaluation of close to 15% so far this year. “The significant rally in the Magnificent Seven’s stock makes Apple’s stock price difficult to justify. Recent pullback could offer entry point for investorswith our model suggesting that its valuation has become more attractive in the last 3 months”, has pointed out.
The also manager of the Jupiter Merian Global Equity Absolute Return fund has pointed out that Apple has opportunities to continue expanding its business. “There are plenty of opportunities for Apple given the growing prevalence of digitalization and its competitive position in the field. The company is already an active player in the technology space wearable, with its well-established Apple Watch and new Vision Pro headset proving to be a hit among Apple lovers. There could be room to expand this offering to other wearable devicessuch as smart jewelry or glasses, that could benefit from AI-enabled devices,” he said.
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