Could This Artificial Intelligence (AI) Stock Be a Hidden Gem for Patient Investors?

• Apple has underperformed the broader marketplace successful the past 3 years.

• The company's smartphone sales, however, were rather beardown past year.

• The summation of AI features to its hardware devices is apt to accelerate its maturation going forward.

• 10 stocks we similar amended than Apple ›

Artificial quality (AI) has been the driving unit down the rally successful tech stocks implicit the past 3 years. Heavy spending connected AI hardware and bundle solutions has led to a 115% surge successful the tech-focused Nasdaq Composite during this period.

However, Apple (NASDAQ: AAPL) has underperformed the broader tech assemblage implicit the past 3 years, rising 89% compared with the triple-digit gains of the Nasdaq Composite. The deficiency of immoderate groundbreaking AI-related determination by Apple has been weighing connected the stock. But if you're a diligent investor, buying Apple banal and holding it for the agelong tally could crook retired to beryllium a astute move, arsenic it is apt to payment from the proliferation of AI.

Let's spot wherefore that whitethorn beryllium the case.

Market probe steadfast Counterpoint Research estimates that the planetary smartphone marketplace recorded 2% shipment maturation successful 2025. Apple importantly outperformed the broader market, with iPhone shipments increasing by 10% past year. This made Apple the largest smartphone OEM (original instrumentality manufacturer) successful 2025, with a 20% marketplace share.

Apple's robust maturation tin beryllium attributed to its latest iPhone lineup, which turned retired to beryllium a deed among customers. The information that the tech elephantine offers its Apple Intelligence suite of features crossed the latest iPhone lineup seems to beryllium 1 of the cardinal reasons wherefore its idiosyncratic basal is shifting toward these phones.

More importantly, Apple is moving connected enhancing its AI offerings. For instance, the institution is reportedly moving to marque its Siri dependable adjunct much intelligent with immoderate assistance from Alphabet's (NASDAQ: GOOG) (NASDAQ: GOOGL) Gemini ample connection exemplary (LLM).

Alphabet has been monetizing the Gemini app by offering aggregate subscription tiers to customers, including a escaped one. The Gemini app allows users to make images, behaviour research, constitute text, edit videos, and entree aggregate AI models.

Alphabet whitethorn person to stock a information of its subscription gross with Apple to summation entree to the latter's immense installed basal of devices. So, this concern looks similar a win-win concern for Apple, arsenic it volition not lone beryllium capable to marque its devices smarter, but besides apt find a mode to monetize its monolithic idiosyncratic base.

Alphabet's Gemini is gaining traction successful the generative AI abstraction by taking stock distant from OpenAI's ChatGPT. So, Apple's concern with Alphabet could crook retired to beryllium a palmy one, perchance paving the mode for the 2 companies to capitalize connected the fast-growing intelligent virtual adjunct marketplace that's expected to make astir $179 cardinal successful gross by 2034.