AI stocks have been on a tear, particularly big-tech companies that have been spending big on AI to grab an early lead. However, the market is showing an increasing reluctance to simply invest in any company willing to throw billions in AI.
Now, we’re seeing that some companies that have been late to the party have been biding their time well. That’s because they can get in now, by employing technology that someone else has already developed.
That’s the apparent plan for consumer tech giant Apple (AAPL). The company may be making a deal with OpenAI to build AI onto devices such as the iPhone.
If so, that could give Apple a fantastic tool for its customers without having to spend billions of dollars developing that technology itself.
That offers an opportunity for Apple to continue its market dominance, and still benefit from the AI developments being made by others.
Action to take: Shares of Apple are worth picking up at current prices, and it’s an ideal company to buy on a pullback as a long-term holding.
Apple pays a small 0.5% dividend, but also has a massive share buyback program in place that could help push share prices higher over time.
For traders, the September $195 calls, last trading for about $6.25, could leverage the stock’s next leg higher into mid-double-digit gains.
Disclosure: The author of this article has a position in the company mentioned here, but does not intend to further trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.