Canadian investors should take advantage of the relative strength in the loonie to beef up their artificial intelligence (AI) exposure. Indeed, there are some notable AI stocks in Canada, but the selection is limited compared to the options south of the border.
While many investors may no longer consider the name as an AI play, given its lack of progress relative to rivals, I think that it’s a mistake to give up on the name as it sails into quarterly earnings due at the very end of July. Personally, I think it makes sense to watch the quarter and buy into any further weakness.
Apple stock: An AI laggard that deserves the benefit of the doubt
As you may have guessed, the mega-cap AI underperformer I am referring to is none other than Apple (NASDAQ:AAPL). It’s down just over 18% right now, but with some very muted expectations for its coming quarter due July 31, 2025, I think the name looks quite interesting, especially if you consider yourself more of a “mild” bull on AI and all the trends that follow it (think reasoning models, agency, automous driving, and all the sort).
It’s still in the AI game, but its pace has been quite a bit slower than some of its peers. This has held the stock back in the past 18 months, but could help shares stay steady if some of the AI froth needs to be cut off the top of this market again.
For Apple investors, it’s one sad headline after another. A while back, the firm pulled the plug on its Apple Car, and with the firm supposedly far behind in AI, it was a bit discouraging to hear that the firm is looking for a partner to help power Siri rather than using its own model.
In defence of Apple CEO Tim Cook amid harsh criticisms
Personally, I think it’s fine if ChatGPT were to grow closer to Siri. I just want Siri to get that much-needed upgrade so that it can be as useful as competing virtual assistants on the market. It’s hard to tell how Apple can win the love of AI investors back. Some individuals have criticized CEO Tim Cook for the company’s struggles with AI.
Indeed, Wall Street is more about “what have you done for me lately,” rather than the past decade and a half of results. In any case, it’s clear that many Apple critics want more of a visionary leader than an operational mastermind.
Could nudging Tim Cook to step aside really be the answer for Apple stock?
I don’t think so. If there’s a man who can turn the stock around, it’s Cook. The man has made investors a ton of money for more than a decade. And with no plans to retire, I believe the best is yet to come as Apple looks to make waves, not only in AI as it plays catch-up, but also in areas such as augmented reality.
With Trump tariffs to navigate, I’d argue that an operational expert, like Cook, deserves to stay in that corner office. For now, Cook has his hands full, with tariffs to worry about, the future of Vision Pro, less-than-stellar iPhone sales in recent quarters, the slowdown in China, and, of course, getting Apple Intelligence up to speed. Give Tim Cook the patience he deserves, and I think shareholders will ultimately prosper again.