To The Moon

$Apple(AAPL)$  Apple's approach of holding back on massive AI spending, drawing a parallel to Rockefeller's Standard Oil playbook, seems to be paying off for the stock. Shares recently hit a record high for a second straight day, closing up about 1.8% at $333.26. The day before, the stock rose 4%, making it the Dow's best performer and pushing its market cap to around $4.8 trillion. Some view Apple as the "anti-AI" trade among the Magnificent Seven, as it keeps its AI investments in check while peers like Alphabet, Microsoft, Amazon, and Meta Platforms are committing hundreds of billions.

The strategy mirrors what Rockefeller did in the 1800s: letting others take the risky, upfront costs (like wildcatters in oil drilling) while positioning to benefit later. Apple is letting its peers fund the heavy AI R&D, planning to adopt the best models later. Acquisitions are another part of the plan, with reports suggesting it's looking for companies to build AI server chips.

Rockefeller won by controlling distribution. Apple currently leads in smartphones, is strong in PCs, and aims to control the devices—iPhone and Mac—where consumers primarily interact with AI.

For the quarter, the stock is up nearly 15%, while the Nasdaq is down 1.1%. This is Apple's best quarterly performance since last September, when it gained 24%. Among the Mag Seven, only Meta's 19% gain comes close; Alphabet is up less than 1%, Microsoft 8.5%, and Amazon 6.2%. The positive trend could continue, with a key test coming this fall with new iPhone launches. For now, the Rockefeller comparison feels relevant.