Cramer Recommends Apple as a Buy

Jim Cramer has reiterated his recommendation to buy Apple stock, advising investors to "own this, not trade it" [1]. This advice comes as the company prepares for a leadership transition, with a new CEO expected to take over from Tim Cook [1].

Cramer's View on Apple and Tech Stocks

Cramer expressed confidence in Apple's future, stating that if Tim Cook believes the company is "in good hands," then it will be [1]. This sentiment follows Rothschild's upgrade of Apple to a buy from hold, raising its price target to $400 from $260, partly due to the potential of a premium-priced foldable iPhone [4]. However, Cramer previously advised against buying Apple immediately ahead of Cook's departure, suggesting analysts might downgrade the stock, creating a buying opportunity [4].

Beyond Apple, Cramer also commented on other tech companies. He recommended Cisco, noting its "really good quarter" despite conservative guidance [1]. In the semiconductor sector, he highlighted Axcelis Technologies as a "very good semiconductor that's been left behind" [2]. Cramer also expressed support for Intel and Micron, which saw gains of 3% and 6% respectively, driven by increased demand for Micron and insider share purchases at Intel [4]. He advised Intel for those seeking data center-related tech and Micron for memory [4].

Upcoming Apple Developments

Apple is expected to unveil new iPhone models at its annual launch event on September 9 [6]. Cramer described this event as "very important" given ongoing questions about Apple's artificial intelligence strategy [6]. A slimmer version of the new iPhone, potentially trading battery life for a lightweight design and featuring Apple's first in-house modem chip, could be a significant catalyst [6]. Cramer compared the potential impact of this "iPhone Air" to the successful launch of the MacBook Air in 2008, suggesting it could address perceptions that recent iPhone models (13 through 16) lacked sufficient differentiation [6].

What to watch

• Apple's annual launch event on September 9 for new iPhone models and AI strategy updates [6].
• The performance of Apple under its new CEO following Tim Cook's departure [1, 4].
• Salesforce's upcoming earnings report, which Cramer indicated could influence Datadog's stock performance [2].

The market will be watching how Apple's new product cycle and leadership transition impact its stock performance, especially as it navigates the competitive landscape in AI and mobile technology.