In a recent interview, an analyst warned that selling Apple Inc (NASDAQ:AAPL) stock before the company's AI developments could be a significant mistake.
What Happened: During a segment of CNBC's "Last Call," Dan Ives, a Wedbush analyst, suggested that divesting Apple stock at this juncture would be a grave error. "We view this as a buying opportunity. We've been here before ... AI is coming to Cupertino. I think to sell this stock ahead of that would be not just the wrong move, but a historically wrong move," Ives said.
Ives' perspective follows a reported 24% decline in Apple's iPhone sales in China during the initial six weeks of the year, resulting in its demotion to the fourth position among smartphone vendors in the country, according to Counterpoint Research.
"We view this as a buying opportunity. We've been here before," says @DivesTech on Apple. "AI is coming to Cupertino. I think to sell this stock ahead of that would be not just the wrong move, but a historically wrong move." $AAPL pic.twitter.com/91KgGyF3nQ
— Last Call (@LastCallCNBC) March 6, 2024
He also emphasized that AI is on the horizon for Apple, indicating that the company's future developments in this field could significantly impact its stock value.
Why It Matters: Apple's AI advancements have been a topic of much discussion recently. An analyst from Rosenblatt, Barton Crockett, pointed out that Apple's recent forays into AI, such as the Vision Pro headset, have received mixed reviews. He suggested that Apple needs to step up its game in the AI sector to maintain its position as a tech leader.
Apple has encountered difficulties in the Chinese market, a point emphasized not only by analysts but also by CNBC's Jim Cramer. In his words, "Club members know our stance on the near-term with Apple. It is not a table pounder. I want stocks to come into well below where they are if we are going to re-build a position."
Despite this, Ives remains optimistic about Apple's future, especially after the company's decision to abandon its EV project, a move he believes was in the company's best interest.
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