Why Apple might be the smarter AI play right now:

• Apple Intelligence runs on-device, no massive GPU farms needed. While competitors burned hundreds of billions on Nvidia chips in 2025, Apple spent only ~$12B in CAPEX. That's the vertical integration advantage.

• iPhone replacement cycle incoming. On-device AI = better performance = reason to upgrade. iPhone sales have plateaued, but this could spark years of momentum.

• Services are the real money machine. App Store + iCloud + Apple Music margins are thicc and recurring. Could hit 50% of total revenue soon.

• Cash fortress: $55B on hand, plus $100B stock buybacks in 2025 alone. That's financial firepower to fund R&D, diversify away from China supply chain, and keep the stock bid up.

• Track record speaks: Beat Wall Street 19 out of last 20 quarters. That's not luck.

• Stock showing relative strength while market gets shaky—textbook sign it's ready to lead when sentiment flips.

The thesis: Apple isn't just riding the AI wave like everyone else. It's built differently. Custom chips + ecosystem lock-in + cash generation = structural edges competitors can't easily copy.