To The Moon

Yesterday, $NVIDIA(NVDA)$ and $Apple(AAPL)$ both surged, becoming the market’s “dual kings” in the eyes of investors.

Nvidia’s stock hit a record intraday high after the company announced a $100 billion investment in OpenAI. The market interpreted this as a major move toward creating a “closed-loop” AI ecosystem.

For comparison, earlier this month, OpenAI signed a $300 billion, five-year cloud services contract with Oracle, sending Oracle’s shares up 35% on the day of the announcement.

Meanwhile, Apple’s shares rose 4.31% to $256.08, pushing its market cap close to $4 trillion, a new yearly high. Demand for the iPhone 17 series has exceeded expectations, prompting Wedbush to raise its target price to $310.

Nvidia: At the Start and End of the AI Narrative

Nvidia’s $100 billion investment in OpenAI may look like “spending,” but in reality, the company can earn it back through sales of GPUs and networking equipment. The order cycle amplifies itself, creating a self-reinforcing business loop.

This also represents Jensen Huang’s key strategic choice in deploying the company’s free cash flow. With annual revenue reaching $200 billion and free cash flow margins at 40%–50%, Nvidia could generate hundreds of billions of dollars in cash flow over the next few years.

By tying itself to OpenAI, Nvidia not only secures a priority partner but also raises barriers to entry in AI infrastructure against rivals like Broadcom and AMD.

Still, risks remain: if the AI bubble bursts, the weak link may be OpenAI’s over-aggressive expansion. This is a key factor to watch going forward.

Apple: Reversal Driven by an Upgrade Cycle

Global demand for the iPhone 17 is 10%–15% higher than for the iPhone 16. Even with a 25% increase in production capacity, supply still falls short of demand.

Wedbush analysts emphasize that China accounts for 27% of Apple’s global shipments, with 15% government subsidies directly boosting demand recovery. This not only extends shipping wait times but also raises the possibility of Apple returning to positive growth in the Chinese market in FY2026.

Apple’s cyclical reversal seems to be a familiar script. Last year, Apple followed a similar pattern: falling in the first half of the year, only to rally and hit new highs toward year-end. Big Tech tends to rise every year — only the timing differs.

So, for investors entering now — should you choose Apple’s cyclical reversal, or continue chasing Nvidia’s AI story?

Comment Below

E.g.

I think Apple has higher potential as the stock has risen very little this year.

REWARDS

• All valid comments will receive 5 Tiger Coins (5-50 coins; depend on comment quality; lucky tiger can get 66 coins)

• Tag your friends to win another 5 Tiger Coins

• High quality comments will win options handbook & options mouse pads