Market Strategists Expect These 2 Magnificent 7 AI 'Sleepers' To Outperform Apple Stock In 2024
Portfolio Pulse from Adam Eckert
Wedbush analyst Dan Ives raised Apple Inc's (AAPL) price target from $240 to $250 and named it the 'Top Tech Pick' for 2024, anticipating it to become the first $4-trillion company. However, Virtus Investment Partners' Joe Terranova believes Alphabet Inc (GOOG, GOOGL) and Amazon.com Inc (AMZN) could outperform Apple in 2024 due to their potential in generative AI, which the market has somewhat overlooked. Cerity Partners' Jim Lebenthal agreed, highlighting Google's Gemini AI and Alphabet's value at 20 times forward earnings. Both analysts expect a rotation of investment into underappreciated mega-cap tech names in the next year.
December 11, 2023 | 8:35 pm
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POSITIVE IMPACT
Apple's price target was raised from $240 to $250 by Wedbush, with expectations of strong performance in 2024, potentially becoming the first $4-trillion company.
The raised price target by a reputable analyst suggests a positive outlook for Apple's stock, which could lead to increased investor confidence and a potential short-term price increase.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
Amazon.com Inc is seen as a sleeper pick for 2024, with expectations that its involvement in generative AI will lead to outperformance compared to Apple.
Amazon's potential in generative AI is highlighted as a key driver for its stock outperformance in 2024, which could attract investor interest and positively impact its short-term stock price.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Alphabet Inc is expected to outperform Apple in 2024 due to its advancements in generative AI, with Google's Gemini AI launch and its attractive valuation at 20 times forward earnings.
The focus on Alphabet's generative AI and its valuation suggests potential for stock appreciation, especially if the market begins to recognize its AI capabilities more fully.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 80
POSITIVE IMPACT
Alphabet Inc's Class A shares (GOOGL) are also expected to benefit from the generative AI trend and are considered undervalued by analysts, indicating a positive outlook for 2024.
Similar to GOOG, GOOGL shares are anticipated to gain from Alphabet's AI initiatives and favorable valuation, which could lead to a short-term positive impact on the stock price.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 80