Somehow, the artificial intelligence trend is here to stay. Most tech trends often fizzle out somewhat quickly. But with many companies insisting that AI is the real deal, and investing accordingly, it’s clear we’re in the early stages of a long-term tech trend like the rollout of the internet, even if it will take some time.
One sign that we could see a continuation is that some major laggards in the AI space are now poised to take the trend further in the years ahead.
For instance, consumer tech giant Apple (AAPL) is on track to become the first U.S. company to hit a $3.5 trillion market cap. Shares have moved out of their funk following the company’s announcement of its AI plans.
However, the stock has still been a laggard. Apple is now up just 21% over the past year, a weak performance among the big tech names. And it’s even slightly underperforming the stock market right now.
It hasn’t helped that the company has stalled a bit in the past year, with revenues off by 4%, and earnings down by 2%.
Action to take: With Apple’s AI plan in place, it could be on track to be the leader in consumer AI tech. That makes shares worth picking up now. Apple also pays a 0.4% dividend, with a slight history of dividend growth.
For traders, the September $240 calls, last trading for about $5.55, could see mid-double-digit returns in the coming weeks.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.