Apple’s (AAPL) Growth Momentum Intact Despite Antitrust Headwinds

Apple Inc. (NASDAQ:AAPL) is one of the most profitable tech stocks to invest in now. On August 25, Bloomberg reported that Elon Musk’s companies X and xAI filed a lawsuit against Apple Inc. (NASDAQ:AAPL) and OpenAI in federal court in Fort Worth, Texas, seeking billions of dollars in damages. The complaint alleges that Apple’s integration of ChatGPT into the iPhone operating system unfairly favors OpenAI, stifles competition, and limits consumer choice.

Photo by Alexandr Bormotin on Unsplash

Musk’s team argued that Apple’s arrangement makes it impossible for rival chatbots to reach the top of the App Store rankings, thereby curbing innovation in generative AI. The filing also contends that Apple Inc. (NASDAQ:AAPL) and OpenAI’s exclusive setup has effectively locked up markets to maintain monopolistic power, mirroring concerns raised by regulators and the U.S. Department of Justice in ongoing antitrust actions against Apple.

Apple Inc. (NASDAQ:AAPL) has already drawn regulatory scrutiny worldwide for how it runs the App Store, most notably during its extended clash with Epic Games. Earlier this year, the U.S. government filed a separate lawsuit accusing the company of using its dominance in app distribution to block competition and slow the rise of so-called “super apps.”

Even with the latest legal challenges, investor sentiment has not wavered much. On August 26, Goldman Sachs reiterated its Buy rating on Apple Inc. (NASDAQ:AAPL) with a $266 target price, pointing to catalysts such as design changes expected in the iPhone 17, potential adjustments in pricing, and stronger carrier-led promotions.

Apple Inc. (NASDAQ:AAPL) designs, manufactures, and markets innovative products, including the iPhone, iPad, Mac computers, Apple Watch, and Apple TV. The company also offers a range of software and services, such as the iOS and macOS operating systems, iCloud, advertising, payment services, Apple Music, and the App Store.

While we acknowledge the potential of AAPL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.