1 Incredibly Cheap Tech Stock That Could Soar 50% Thanks to Apple's Generative AI Move

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Apple (NASDAQ: AAPL) recently jumped into the fast-growing market for smartphones capable of running generative artificial intelligence (AI) applications. Even though the latest iPhone models won't get the company's Apple Intelligence suite of features until October, the demand for its latest devices seems to be good.

JPMorgan analysts point out that the delivery time delays of Apple's new iPhones are expanding, which is a sign of healthy demand for these smartphones. Meanwhile, Dan Ives of Wedbush Securities said he believes that Apple could sell 90 million units of its new smartphones in 2024. That's up 8 million to 10 million units when compared to last year's release.

T-Mobile CEO Mike Sievert goes a step further, saying that the demand for iPhone 16 models is better than it was last year. All of this indicates that Apple could strike gold with its latest smartphones, and that won't be surprising as the market for generative AI smartphones is forecast to clock a compound annual growth rate (CAGR) of 78% through 2028, according to IDC.

Additionally, there is a huge installed base of 300 million iPhones that have not been upgraded in at least four years, according to Wedbush, and that could trigger a huge upgrade cycle as customers move to generative AI smartphones.

One way investors can take advantage of the robust sales of the iPhone 16 is by buying Apple stock. However, another company could ride Apple's coattails and deliver handsome gains thanks to the iPhone 16. Let's take a closer look at it.

This Apple supplier could get a nice boost to its bottom line

Qorvo (NASDAQ: QRVO) is a well-known supplier of radio frequency (RF) chips used in Apple's devices such as iPhones and iPads. The chipmaker is trying to diversify its customer base and supply chips to leading Android smartphone OEMs (original equipment manufacturers), but it still got 46% of its total revenue from Apple in the previous fiscal year.

As Qorvo's fortunes appear to be intertwined with Apple's, the sunny sales prospects of the latest iPhones bode well. Even better, Qorvo could be supplying more chip content for the new iPhones and thus making more money on each unit that Apple builds.

On its fiscal 2025 first-quarter earnings conference call a couple of months ago, Qorvo management remarked that the company is investing in several long-term programs with its largest customer to increase its content and grow its business further. What's more, a report by the Chinese newspaper Economic Daily News in April this year pointed out that Apple has changed the design of the antenna module for its latest iPhone generation, thereby incorporating more chips from Qorvo.