Apple named among ‘catch-up’ AI winners for the second half

AI laggards — Apple, Advanced Micro Devices, and Intel, for three high-profile examples – are going to shine the second half of this year according to Melius Research. 
Adam Clark for Barron’s:
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In the first six months, the big beneficiaries of the AI boom were Nvidia, Broadcom, and a few other chip makers because of major tech companies pledging to spend more on AI infrastructure. That rate of investment could slow as the year wears on, according to analyst Ben Reitzes. 
The pullback, though, might not be a sign of the AI bubble bursting, but rather a trigger to rotate into other tech names. That includes AMD, Apple, and Intel, Reitzes wrote in a research note. 
“Once again, we are believers in a ‘catch-up’ trade for some in semis [semiconductors], hardware and even software — those with lower expectation,” he said…
Apple has risen steadily since announcing its AI strategy last month. Reitzes thinks there is more to come with its coming iPhone launch, which he has previously suggested could lead to a “supercycle” with growth in revenue generated from the smartphone of about 20% for up to two years.
Reitzes has a Buy rating and $260 target price on Apple stock.

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