Apple and Amazon: Strong Growth Stocks Worth Investing In
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy AAPL?
Source: Fool
- Apple's New Product Drive: Apple's launch of the MacBook Neo, starting at just under $600, marks its first budget laptop, expected to attract more users into its ecosystem, thereby driving future sales growth.
- Service Business Growth: Apple's services segment, including the App Store and iCloud, continues to grow at mid-teens rates with a gross margin of 47.33%, providing strong profit growth potential that is expected to support stock performance over the long term.
- Amazon's Cloud Computing Edge: Amazon's leadership in cloud computing, particularly through partnerships with Anthropic and OpenAI, is anticipated to drive robust growth for its AWS business in the coming years, further solidifying its market position.
- E-commerce Efficiency Gains: Amazon's deployment of over one million robots in fulfillment centers, powered by its DeepFleet AI model, has significantly enhanced e-commerce operational efficiency, resulting in profitability growth outpacing revenue growth, showcasing strong operating leverage.
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Analyst Views on AAPL
Wall Street analysts forecast AAPL stock price to rise
27 Analyst Rating
17 Buy
9 Hold
1 Sell
Moderate Buy
Current: 255.760
Low
239.00
Averages
306.89
High
350.00
Current: 255.760
Low
239.00
Averages
306.89
High
350.00
About AAPL
Apple Inc. designs, manufactures and markets smartphones, personal computers, tablets, wearables and accessories, and sells a variety of related services. Its product categories include iPhone, Mac, iPad, and Wearables, Home and Accessories. Its software platforms include iOS, iPadOS, macOS, watchOS, visionOS, and tvOS. Its services include advertising, AppleCare, cloud services, digital content and payment services. The Company operates various platforms, including the App Store, that allow customers to discover and download applications and digital content, such as books, music, video, games and podcasts. It also offers digital content through subscription-based services, including Apple Arcade, Apple Fitness+, Apple Music, Apple News+, and Apple TV+. Its products include iPhone 16 Pro, iPhone 16, iPhone 15, iPhone 14, iPhone SE, MacBook Air, MacBook Pro, iMac, Mac mini, Mac Studio, Mac Pro, iPad Pro, iPad Air, AirPods, AirPods Pro, AirPods Max, Apple TV, Apple Vision Pro and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Apple's New MacBook Neo Gains Attention
- Pricing Advantage: Apple's newly launched MacBook Neo is priced at $600, making it the first dedicated budget laptop aimed at users, which is expected to attract a significant number of students and older users, thereby enhancing Apple's market share in the education sector.
- Strong User Ratings: Renowned tech reviewer MKBHD awarded high ratings across various user groups for the MacBook Neo, with students receiving an A+, indicating the product's robust capability to meet educational needs, potentially driving more users towards Apple products.
- Significant Market Potential: Investor Gene Munster estimates that the MacBook Neo could contribute 0.5% to Apple's overall revenue in the next year and potentially add $2 billion in annual revenue to the Mac segment, driving a 6% growth for that division.
- Expanded User Base: MKBHD's review also awarded an A rating to older users, suggesting that the product has the potential to attract seniors who have not previously used Apple products, further broadening Apple's market reach.
See More
Apple Stock Remains Buffett's Favorite Investment
- Stable Holdings: Even after Buffett's departure as CEO, Apple stock still represents 19.2% of Berkshire Hathaway's portfolio, underscoring its strategic importance within the company.
- Substantial Dividend Income: Despite a low dividend yield of 0.4%, Berkshire Hathaway collected $280 million in dividends in 2025, highlighting the cash flow advantages of long-term holdings.
- Significant Stock Appreciation: With a cost basis of $6.3 billion, Berkshire's current stake in Apple is valued at nearly $60 billion, indicating a high return on investment of 3.8%, which offers attractive yield potential for investors.
- Strong Market Performance: Over the past decades, Apple stock has performed exceptionally well, having been the most valuable company globally multiple times, attracting a large number of investors and further solidifying its market position.
See More
Apple Cuts App Store Fees in China Amid Regulatory Pressure
- Fee Reduction: Apple is reducing its App Store commission in China from 30% to 25%, which is expected to save Chinese developers over 6 billion yuan annually, thereby enhancing the competitiveness of small businesses and mini-app developers.
- Consumer Benefits: This policy shift could lead to decreased prices for digital goods and services, potentially saving consumers up to 1 billion yuan per year, thereby enhancing overall market consumption capacity.
- Global Trend: This move by Apple aligns with Google's decision to cut Android developer fees globally, indicating increasing scrutiny of the 'Apple Tax' and its potential impact on international business models.
- Market Expansion: Apple is increasing iPhone production in India by approximately 53%, aiming to assemble 55 million devices in 2025, which reduces reliance on China while enhancing its competitive position in the global market.
See More
TSMC Continues Growth Amid AI Demand, Strong Market Position
- Market Share Advantage: TSMC commands approximately 72% of the global semiconductor foundry market, and its market share exceeds 90% in advanced AI chips, providing the company with significant pricing power and competitive advantages in the industry.
- Significant Revenue Growth: TSMC is projected to achieve $122.4 billion in revenue by 2025, reflecting a nearly 36% increase from 2024, primarily driven by surging demand for AI chips in data centers and cloud infrastructure, showcasing the company's robust performance in a rapidly growing market.
- High-Performance Computing Boost: The High-Performance Computing (HPC) segment accounted for 58% of TSMC's revenue in 2025, growing 48% from 2024, indicating that AI-related products are becoming the primary growth driver for the company.
- Long-Term Investment Value: While it's uncertain whether TSMC's stock will continue to rise over the next year, trading at 24.7 times projected earnings suggests that its stock remains relatively inexpensive given its dominant position in the tech industry, making it a suitable candidate for long-term holding.
See More
Apple and Amazon: Strong Growth Stocks Worth Investing In
- Apple's New Product Drive: Apple's launch of the MacBook Neo, starting at just under $600, marks its first budget laptop, expected to attract more users into its ecosystem, thereby driving future sales growth.
- Service Business Growth: Apple's services segment, including the App Store and iCloud, continues to grow at mid-teens rates with a gross margin of 47.33%, providing strong profit growth potential that is expected to support stock performance over the long term.
- Amazon's Cloud Computing Edge: Amazon's leadership in cloud computing, particularly through partnerships with Anthropic and OpenAI, is anticipated to drive robust growth for its AWS business in the coming years, further solidifying its market position.
- E-commerce Efficiency Gains: Amazon's deployment of over one million robots in fulfillment centers, powered by its DeepFleet AI model, has significantly enhanced e-commerce operational efficiency, resulting in profitability growth outpacing revenue growth, showcasing strong operating leverage.
See More
Apple Cuts App Store Fees in China Amid Regulatory Pressure
- CEO Transition: Build-a-Bear's CEO Sharon Price John hands over the reins to COO Chris Hurt after nearly 13 years, reflecting the company's successful transformation with over 50% revenue growth since 2019 and pre-tax margins expanding from nearly 0% to almost 13%.
- Cash Flow Shift: The company has transitioned from a cash burn of approximately $1.7 million in 2019 to consistently generating free cash flow, having returned $170 million to shareholders through dividends and repurchasing over 4 million shares, effectively reducing its share count by about 25%.
- Apple's Fee Reduction Strategy: Apple lowers its App Store commission fees in China from 30% to 25% and from 15% to 12% for small businesses, expected to save developers over $870 million annually, indicating a defensive posture against regulatory pressures.
- Market Impact: This fee reduction not only benefits high-grossing developers like Duolingo by enhancing their local margins but also potentially mitigates Apple's risk of facing formal antitrust investigations in China, showcasing its adaptability in a challenging market landscape.
See More
Apple's New MacBook Neo Gains Attention
- Pricing Advantage: Apple's newly launched MacBook Neo is priced at $600, making it the first dedicated budget laptop aimed at users, which is expected to attract a significant number of students and older users, thereby enhancing Apple's market share in the education sector.
- Strong User Ratings: Renowned tech reviewer MKBHD awarded high ratings across various user groups for the MacBook Neo, with students receiving an A+, indicating the product's robust capability to meet educational needs, potentially driving more users towards Apple products.
- Significant Market Potential: Investor Gene Munster estimates that the MacBook Neo could contribute 0.5% to Apple's overall revenue in the next year and potentially add $2 billion in annual revenue to the Mac segment, driving a 6% growth for that division.
- Expanded User Base: MKBHD's review also awarded an A rating to older users, suggesting that the product has the potential to attract seniors who have not previously used Apple products, further broadening Apple's market reach.
See More
Apple Stock Remains Buffett's Favorite Investment
- Stable Holdings: Even after Buffett's departure as CEO, Apple stock still represents 19.2% of Berkshire Hathaway's portfolio, underscoring its strategic importance within the company.
- Substantial Dividend Income: Despite a low dividend yield of 0.4%, Berkshire Hathaway collected $280 million in dividends in 2025, highlighting the cash flow advantages of long-term holdings.
- Significant Stock Appreciation: With a cost basis of $6.3 billion, Berkshire's current stake in Apple is valued at nearly $60 billion, indicating a high return on investment of 3.8%, which offers attractive yield potential for investors.
- Strong Market Performance: Over the past decades, Apple stock has performed exceptionally well, having been the most valuable company globally multiple times, attracting a large number of investors and further solidifying its market position.
See More
Apple Cuts App Store Fees in China Amid Regulatory Pressure
- Fee Reduction: Apple is reducing its App Store commission in China from 30% to 25%, which is expected to save Chinese developers over 6 billion yuan annually, thereby enhancing the competitiveness of small businesses and mini-app developers.
- Consumer Benefits: This policy shift could lead to decreased prices for digital goods and services, potentially saving consumers up to 1 billion yuan per year, thereby enhancing overall market consumption capacity.
- Global Trend: This move by Apple aligns with Google's decision to cut Android developer fees globally, indicating increasing scrutiny of the 'Apple Tax' and its potential impact on international business models.
- Market Expansion: Apple is increasing iPhone production in India by approximately 53%, aiming to assemble 55 million devices in 2025, which reduces reliance on China while enhancing its competitive position in the global market.
See More
TSMC Continues Growth Amid AI Demand, Strong Market Position
- Market Share Advantage: TSMC commands approximately 72% of the global semiconductor foundry market, and its market share exceeds 90% in advanced AI chips, providing the company with significant pricing power and competitive advantages in the industry.
- Significant Revenue Growth: TSMC is projected to achieve $122.4 billion in revenue by 2025, reflecting a nearly 36% increase from 2024, primarily driven by surging demand for AI chips in data centers and cloud infrastructure, showcasing the company's robust performance in a rapidly growing market.
- High-Performance Computing Boost: The High-Performance Computing (HPC) segment accounted for 58% of TSMC's revenue in 2025, growing 48% from 2024, indicating that AI-related products are becoming the primary growth driver for the company.
- Long-Term Investment Value: While it's uncertain whether TSMC's stock will continue to rise over the next year, trading at 24.7 times projected earnings suggests that its stock remains relatively inexpensive given its dominant position in the tech industry, making it a suitable candidate for long-term holding.
See More
Apple and Amazon: Strong Growth Stocks Worth Investing In
- Apple's New Product Drive: Apple's launch of the MacBook Neo, starting at just under $600, marks its first budget laptop, expected to attract more users into its ecosystem, thereby driving future sales growth.
- Service Business Growth: Apple's services segment, including the App Store and iCloud, continues to grow at mid-teens rates with a gross margin of 47.33%, providing strong profit growth potential that is expected to support stock performance over the long term.
- Amazon's Cloud Computing Edge: Amazon's leadership in cloud computing, particularly through partnerships with Anthropic and OpenAI, is anticipated to drive robust growth for its AWS business in the coming years, further solidifying its market position.
- E-commerce Efficiency Gains: Amazon's deployment of over one million robots in fulfillment centers, powered by its DeepFleet AI model, has significantly enhanced e-commerce operational efficiency, resulting in profitability growth outpacing revenue growth, showcasing strong operating leverage.
See More
Apple Cuts App Store Fees in China Amid Regulatory Pressure
- CEO Transition: Build-a-Bear's CEO Sharon Price John hands over the reins to COO Chris Hurt after nearly 13 years, reflecting the company's successful transformation with over 50% revenue growth since 2019 and pre-tax margins expanding from nearly 0% to almost 13%.
- Cash Flow Shift: The company has transitioned from a cash burn of approximately $1.7 million in 2019 to consistently generating free cash flow, having returned $170 million to shareholders through dividends and repurchasing over 4 million shares, effectively reducing its share count by about 25%.
- Apple's Fee Reduction Strategy: Apple lowers its App Store commission fees in China from 30% to 25% and from 15% to 12% for small businesses, expected to save developers over $870 million annually, indicating a defensive posture against regulatory pressures.
- Market Impact: This fee reduction not only benefits high-grossing developers like Duolingo by enhancing their local margins but also potentially mitigates Apple's risk of facing formal antitrust investigations in China, showcasing its adaptability in a challenging market landscape.
See More
