Investors contemplating their positions in Apple stock are urged to reconsider their stance, according to financial commentator Jim Cramer. The tech powerhouse recently faced a setback, with shares dropping 1.5% on Tuesday, marking the seventh consecutive week of decline. Over this period, Apple’s stock has plummeted more than 11%, in contrast to a mere 1% dip in the S&P 500. This downturn has been fueled by market shifts away from high-growth stocks and rising concerns over increasing component costs.
Despite this sell-off, Cramer emphasized that it presents a prime opportunity for investors to re-enter the market. He pointed out that Apple’s recent collaboration with Alphabet, which utilizes Google’s cloud technology and the large language model Gemini, signifies a strategic pivot in its artificial intelligence approach. This partnership will enhance Apple’s AI features, including a revamped version of Siri expected later this year. “This is a great opportunity… they happen to get the premier AI by dealing with Gemini,” Cramer noted, believing Apple has emerged as a significant beneficiary in this collaboration.
The potential for new features on the iPhone driven by this partnership could stimulate customer upgrades, boosting sales for what remains Apple’s core revenue generator. Last year, concerns regarding Apple’s perceived delay in AI advancements weighed heavily on investor sentiment, resulting in underperformance relative to other major tech players. For instance, while Apple recorded an 8.5% gain in 2025, competitors Nvidia and Microsoft posted much stronger performances of 39% and nearly 15%, respectively.
Additionally, some analysts have raised alarms about surging memory costs affecting Apple’s bottom line. Citigroup recently revised its price target for Apple, lowering it from $330 to $315 per share due to the rising costs of dynamic random access memory (DRAM)—a key component essential for storing data in Apple devices. DRAM prices have more than doubled since last October, largely driven by soaring demand from AI data centers.
Nevertheless, several factors suggest these concerns may be overstated. Apple has consistently demonstrated the ability to pass increased costs onto consumers, as seen during previous spikes in memory pricing that had minimal impact on gross margins. The company also maintains long-term agreements with suppliers, granting it a degree of pricing stability and negotiating power over other electronics manufacturers.
Moreover, the core opportunity for Apple remains firmly intact. The partnership with Google, where AI processes run smoothly in the cloud without influencing hardware costs, mitigates potential issues associated with rising DRAM expenses. Analysts at Evercore ISI echoed this sentiment, labeling the concerns over memory costs as “minimal” and affirming that demand for iPhones continues to be robust. As a result, Evercore has added Apple to its “Tactical Outperform list” and reaffirmed its buy rating on the stock.
In light of these insights and potential opportunities, Cramer urges investors not to overlook Apple’s potential for growth, especially as its AI strategy starts to materialize.
