AAPL bull thesis driven by OpenAI's purchase of M5 Ultra Studios due to superior price-performance vs RTX 6000; momentum continues until AI lab sentiment sours.

You've got uh honestly Apple I mean you got to watch my Apple video yesterday. Apple open AAI. Oh man, makes you salivate over Apple stock. Holy moly, it's a pricey stock. Uh but uh man, great job. Fantastic job, Apple.

Uh you've got Apple up about 2% uh which is fantastic. I mean just really riding the back of that uh ultra chip that we talked about yesterday. Really really impressive.

look at this. Apple really rallying here now after that uh, that OpenAI purchase yesterday. I mean, great day for Apple. Yet, Apple's up two and a half. That's really impressive. had a $4.7 trillion market cap.

They've really just been taking off since their uh uh the Leopold fall down to 300. But if you average out, you know, the Leopold fall Oh, and they even had a fall over here in June.

If you average some of this out, the trajectory has been incredible. Look at that. Going all the way back to 2025 when it's at 187. And this puppy's coming up on a double, you know, since uh over the last year and a halfish.

Pretty impressive. And the M5 move is great. A lot of people very very enthusiastic about uh uh the M5 hardware. And it makes sense. If you didn't see my video on it yesterday, I think there's a big reason why OpenAI bought thousands of these.

Apple, for example, is a massive beneficiary now apparently of OpenAI buying thousands, tens of thousands of Mac M5 Ultra Studios, which is incredible because you could actually buy this whole set of hardware for less than what you could buy an RTX 6000 for, which will cost you, you know, retail somewhere around 14 to $15,000.

And if you're, you know, able to buy it wholesale, you're still paying about 11 grand, but you could get a 96GB VRAMm or unified [clears throat] RAM Apple for somewhere, you know, these M5s for somewhere around 8 grand.

Whereas even if you didn't pay wholesale pricing for that same 96GB, you know, you're you're paying almost twice as much money.

So that's one of the reasons Apple continues to see this pop in markets right now. And I think it'll continue at least until we start seeing bearishness from these AI labs.

A new era is officially underway at Apple as John Turnis takes over for Tim Cook. That's Apple stock. That's a juicer.

is he talking Apple? He is company on a market cap basis into a $4.6 trillion iconic global brand. Apple shares have jumped almost 2,300% since Cook became CEO. That was in August of 2011.

The stock pulling ahead of the S&P 500 and NASDAQ 100 and honestly never really looking back.

Yeah. So, the real big takeaway is that underneath Tim Cook, even though he has sort of the reputation for not being nearly as exciting as say Steve Jobs, the stock performed extremely well under him.

The favorite uh stat that I uncovered, I think, was from Bank of America saying that under him, Apple added more than 30 million in market cap every hour for 15 years. So, just massive accumulation over time. uh a real focus on building out the company's services business which is high margin recurring revenue.

So more of that, less of the exciting sort of, you know, new product introductions that people associate with the Steve Jobs era, but certainly under him, pretty remarkable outperformance, especially relative to the broader market.

Nearer term, is there anything to talk about around how the stocks behave since Apple announced that this was going to happen, that Tim Cook would step down today, John Turners would take the CEO role today, or has it been more closely aligned with an AI story from the stocks perspective?

Yeah, I don't think people were expecting too much by way of like a rocky transition here. So, the stock hasn't really been pulling back on that. What has been interesting about the stock is you alluded to the AI part of this.

Apple has had a kind of pronounced negative correlation with AI. It's very negative correlation to semiconductor stocks, to the NASDAQ 100. The idea is that because Apple isn't investing too aggressively in AI the way the hyperscalers are, it's not benefiting from it the way the chip makers are.

If sentiment towards AI starts to sour a little bit, we see people in general rotate back into Apple and vice versa. So today we're seeing some weakness in chip makers, there's some concern about the state of uh, you know, maybe AI overall and that's why we're seeing Apple outperforming today or at least contributing to that.

I mean, if if it's popping on the CIA CEO story, honestly, I think that's the wrong reason for it to pop. I think the M5 CHIP IS why it's popping. So, this this idea it's, oh, it's it's the CEO.

Okay. Okay. I I get it. Uh but um I I don't I don't think so. M I get the argument. I just disagree.

This week's story you wrote that I went back and read this idea that John Tennis is the product guy. He's good at hardware, but he's not necessarily good at finance or sales or legal.

He'll have a team of people around him. Talk about that and how John Turnis manages a veteran management team over at Apple.

Yeah, it's funny. We've been talking about this now for two and a half years, so it feels a little repetitive rather than than day one. But it is interesting that we've finally come to this moment.

This is a big deal for Turnis. This is a big deal for Apple. And this is an interesting situation in which someone who was a peer of the rest of the staff on Apple's executive team has now risen up to be their boss. And that's different.

two or three times before then he had been the COO so he was in a different stratosphere to everyone else and he was a a shoe in for the role you know until my reporting on this about two and a half years ago was a bit out of a out of left field darkhore surprise and it all came to be that's because of his product chops and how he's going to lead this company the board hopes he hopes Apple employees hope and of course customers hope into new innovative products for the future

somebody's situation who does appear to be changing. You've reported on in the last 24 hours. There is a retirement or there is somebody senior in that group who is stepping back.

Uh he's not the only one, but uh I'll talk about the one that we've reported so far. That's uh Phil Company's longtime head of marketing. uh after stepping down from the marketing role in 2020, he became an Apple fellow running the app store and Apple events, which means he's in charge of the stores on all the company's products uh as well as his product launch events.

He's stepping back uh for unspecified projects. So, he'll remain at the company for now. Uh but he is on route to retirement. And so, that's another big changing the guard for Apple as well.

And there'll be one more that we can talk about later.

Next week, Wednesday, September 9th, we get the full iPhone event, the centerpiece, a foldable iPhone. What have you reported on what we expect to hear from Apple?

It's going to be pretty and it's going to cost a pretty penny. I continue to hear that it's going to be priced north of $2,000 US. Uh, obviously, this is expensive technology with that expansive display, uh, as well as that folding mechanism.

And you have two screens now, the inner screen and the outer screen. And so that is going to be the main event at this showcase. We'll also see the 18 Pro, 18 Pro Max. Uh there'll be a bevy of new colors, including a new sky blue and a wine, burgundy, red, uh whatever you prefer to call it on the Pro models.

The Pro Max will now get a mechanical aperture, so you can use a manual setting to let in as much light as you want into the photo, so better dark photography or photography at night.

Uh and then you'll see the new Apple watches as well. AirPods 5 uh is also likely to arrive. Not major changes on the Apple watches uh but you'll see improvements to health tracking, including a continuous heart rate monitor.

Right now, uh you're at random intervals. Uh and when you're

That's interesting. I wonder if they're going to try to compete with Aura before the Aura IPO. Very quickly, is this going back to live events? This is still recorded. We just have 15 seconds.

Uh it'll be the same as you've seen before. John Turnis will come on stage, talk for a few minutes introducing himself as CEO. Then they'll play the video that's for attendees in Certino at the Steve Jobs Theater and then everyone else can watch that same video live online through the Apple TV, through the Apple website, YouTube, other social sites.

So, uh should be a fun event. I'm really looking forward to it.

That'll be interesting. So, that's uh that's next week that uh those are some fascinating insights. I mean watch and the phone and the colors and camera. I mean, color and camera, that's the same stuff they do basically every year.

And you know, they managed to suck us into sucker us into upgrading. Many of us, not everybody. A lot of people are like, I'm tired of this crap. It's the same thing every year.

But, uh, yeah, you got to give uh you got to give some um some credit. You know, they are that man, that M5 so impressive.

Dude, Apple won't stop. Can't stop. Won't stop.

and so is Apple at nearly 3%. Really impressive.