Jim Cramer says Apple is 'very bankable' after its iPad event

2024-05-07 14:01:48 ET

Jim Cramer says Tim Cook – the chief executive of Apple Inc (NASDAQ: AAPL) and his team is “very bankable” after the tech behemoth rolled out new iPads with its latest M4 chip on Tuesday.

Cramer reiterates bullish view on $AAPL

It’s the first time the multinational has launched new versions of iPad since October 2022. According to CEO Tim Cook:

This is the biggest day for iPad since its introduction.

Cramer reiterated his bullish stance on $AAPL also because the Nasdaq-listed firm is developing its own AI chip for data centres, as per a WSJ report on Tuesday.

He remains optimistic even though Apple reported a 10% hit to iPhone sales in its fiscal second quarter last week ( find out more ). Shares of the tech titan are still up 10% versus their recent low at writing.

Apple AI chip is different from Nvidia’s

Note that working on an AI chip does not put Apple in direct competition with Nvidia per se.

That’s because the product it is developing is supposed to be used for “inference” while those of Nvidia are primarily used for “training”. Still, the Mad Money host said on CNBC’s “ Squawk on the Street ”:

This is a very good sign because it’s the beginning of what I regard as the Apple offense on AI. You’re starting to think maybe it deserves a 25 or 26 multiple.

On Tuesday, analysts at Bank of America reiterated their “buy” rating on Apple stock that pays a dividend yield of 0.55% at writing.

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