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Everybody likes to be first. Wall Street, especially. There’s always a lot of excitement around the company that gets to a new technology or a new market before everybody else.
But being first doesn’t always mean you’re going to win.
Apple Inc. (AAPL) has proved that plenty of times.
The company didn’t invent the MP3 player. But once the iPod arrived, those little white earbuds were everywhere.
Apple wasn’t the first to make a smartphone, either. Then the iPhone showed up, and I don’t have to tell you how that turned out.
Being fashionably late to the party is kind of Apple’s thing.
It’s usually willing to let somebody else get there first. That way, it can see what works and what doesn’t. Then, it comes out with its own version – and it usually ends up being something that people can’t resist.
And we may be about to see Apple do it again.
In today’s ÃÛÌÒ´«Ã½ 360, let’s take a closer look at Apple’s major announcement next week. I’ll also explain how it may end up being one of the next winners of the next phase of the AI boom. Then, I’ll show you why that next phase is a much bigger story than Apple – and where I’m looking for a new group of AI winners.
Apple’s Next Big Move
Over the past few years, I’ve periodically gotten the same pointed question from you: “Why don’t we own AAPL?”
Fair question. I’ve recommended it several times over the past couple of decades – and every time, we’ve sold it for a gain.
Since then, we’ve largely avoided Apple. It simply lacked the earnings and sales momentum.
But I think that’s all about to change.
Next week, one of its most anticipated new devices is expected to finally make its debut. Multiple sources have reported that Apple is expected to finally introduce its first folding iPhone: the iPhone Ultra.
Now, it might seem like Apple is a little late to the party – Samsung introduced its first foldable smartphone seven years ago, and Google launched its foldable phone in 2023.
But Apple appears to have used that extra time to address some of the biggest complaints about foldable phones.
The iPhone Ultra is expected to feature a wider inner display that should make videos and multitasking feel more natural. Apple has also reportedly spent years working to reduce one of the biggest complaints about foldable phones: the visible crease down the middle of the screen.
Samsung and Google’s foldable phones both feature that visible crease. Apple reportedly wanted to reduce it before bringing its own foldable iPhone to market.
In other words, Apple didn’t rush to be first. It waited until it believed it could build a better version.
And investors may soon find out whether that strategy pays off again.
Reports put the iPhone Ultra’s price between $1,999 and $2,500. Despite that price tag, IDC expects Apple to ship more than 10 million foldable iPhones in its first year alone, making it the second-biggest player in the market right out of the gate.
So, I expect the iPhone Ultra to be a big hit for Apple.
The launch also comes just days after John Ternus succeeded Tim Cook as CEO. As Apple’s longtime hardware chief, Ternus now gets an early chance to put his stamp on the company’s next chapter.
But the foldable screen itself isn’t the part of Apple’s strategy that interests me most.
Apple’s Real Story Is Bigger Than Hardware
As exciting as the iPhone Ultra could be, I don’t think a folding screen is the biggest opportunity for Apple.
That would be artificial intelligence. Or, more specifically, edge AI.
Don’t let the fancy name throw you. Edge AI simply means running more artificial intelligence directly on the device in your hand, rather than sending every request back and forth to a massive data center.
The first stage of the AI boom has been an arms race to build bigger data centers packed with powerful chips. But AI is increasingly moving onto smartphones, computers, cars, robots and other devices at the edge of the network.
That creates a different challenge. On a small device, every watt of power and degree of heat matters. So, edge AI requires high performance without the enormous power and cooling systems available in a data center.
And Apple has spent years building exactly that kind of tightly integrated system.
The company controls the hardware, the operating system and the chips inside its devices. And it has an enormous base of iPhones, iPads, Macs and other devices already in consumers’ hands.
Apple is already putting this idea to work with Apple Intelligence.
Some AI tasks can run directly on its devices, while more complex requests can be sent to its Private Cloud Compute servers.
That gives Apple an interesting middle ground. It can deliver faster, more private AI on-device while still tapping the cloud when needed. And unlike some of its Big Tech rivals, Apple doesn’t necessarily have to win the race to build the world’s biggest AI data centers.
It may be able to let other companies fight that battle while it focuses on putting AI into the devices people already use every day.
That’s why I think Apple could emerge as one of the more surprising beneficiaries of this next phase of AI.
Where I’m Looking Beyond Apple
Of course, the AI story isn’t the only reason I like Apple here. The fundamentals are improving, too.
AAPL now carries a B grade in Stock Grader after spending much of the past five years between a C and D. And analysts expect earnings to grow 18% and sales to increase 14.8% this fiscal year – Apple’s strongest growth in years.
In fact, I recently added Apple to the .
But here’s the important part, folks: Apple is just one way to profit from what’s ahead.
It’s already one of the biggest companies in the world, so it takes a lot more to really move the needle.
Meanwhile, the AI boom itself is broadening. The first phase rewarded the companies building huge models, advanced chips and massive data centers. Now, AI is spreading into new devices, industries and types of computing.
That’s why I’m especially interested in the smaller companies supplying the chips, infrastructure and technology this next phase will require.
That doesn’t mean I’m giving up on the big AI names. Heck, I just told you I added Apple.
But I do think investors need to start looking beyond the obvious names.
My research has already uncovered several smaller names that I think could be big winners from what I call the .
At the center of it is a massive new effort taking shape across America’s national laboratories. President Trump has compared it to a new Manhattan Project for AI, and I believe the companies supplying the chips and infrastructure behind it could be among the next big winners.
That’s why I recently put together this to show exactly what I believe is coming, what it could mean for the AI boom and how investors can prepare.
I’ll also show you the companies I believe could benefit most – including the name and ticker symbol of one stock at the heart of it all.
Sincerely,
Louis Navellier
Editor, ÃÛÌÒ´«Ã½ 360
The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:
Apple Inc. (AAPL)
