Jim Cramer suggests Apple should acquire AI startup Perplexity to improve AI competitiveness

From Yahoo Finance: 2025-06-25 11:40:00

Renowned CNBC host Jim Cramer suggests that Apple should acquire AI startup Perplexity to catch up in the AI race dominated by Microsoft, Meta, Google, and Amazon. Perplexity is known for its unique generative AI platform, offering real-time, citation-backed answers and powerful language models like GPT-4 Turbo. The company aims to raise $500 million at a $14 billion valuation.

Apple, with its $28.2 billion cash pile, has the financial strength to make a significant acquisition like Perplexity. Despite concerns about Apple’s AI competitiveness, its Services division has been a bright spot. The company continues to innovate, launching new products like the iPhone 16e and expanding globally to attract new users.

Apple’s fiscal Q2 results surpassed expectations with $95.4 billion in revenue, a 5.1% YoY increase. The company reported a gross margin of 47.1% and earnings per share of $1.65, beating estimates. Apple ended the quarter with $28.2 billion in cash, announcing a $100 billion share repurchase program and a 4% dividend increase.

Analysts maintain a “Moderate Buy” rating for Apple stock with a mean target price of $230.75, indicating a potential 15.2% upside. Of 37 analysts covering the stock, 18 have a “Strong Buy” rating, while only one has a “Moderate Sell” rating. Apple’s financials remain robust, with a market cap of $3 trillion and strong performance in a mature business cycle.



Read more at Yahoo Finance: Is AAPL Stock a Buy? Jim Cramer Says ‘Maybe Not’ Unless Apple Does This 1 Surprising Thing.