Apple: Super Intelligent on AI
Stocks raged higher this week, driven by huge earnings beats from tech giants. So let's get into this week's big stories:
1. Put Some Respect on Apple's Name
For a while, it was hard to escape stories about Apple (AAPL) supposedly falling behind because it wasn't doing enough in AI.
Yet with Thursday's earnings report, we learned that iPhone and Mac demand is still booming.
Even without the company ramming AI features down our throats.
Remember, as anyone with a semi-functioning brain knows, you can run AI apps on Apple's fantastic hardware.
Like Mac Minis, which are hugely popular for running local AI agents like OpenClaw.
I've never met a single human being that stopping using an iPhone or Mac because of a lack of AI functionality.
As an Apple shareholder, I hope new CEO John Ternus stays the course by focusing on great products.
And partner with companies like Alphabet (GOOGL), OpenAI, and Anthropic where it makes sense.
2. SanDisk Flashed Before My Eyes
SanDisk (SNDK) reported another beyond shocking earnings beat on Thursday, and the stock is now up 363% year-to-date.
That makes it the top stock in the S&P 500 and Nasdaq 100 by a country mile.
Intel (INTC) is #2 with a 166% gain.
AI data centers are sucking up flash memory way faster than it can be made, so prices are up exponentially.
I have a 2-terabyte SanDisk SSD drive I got in 2023 for $180. Storage/memory prices are “supposed” go to down over time. But a similar new one would cost me $320.
Of course, I ignored JR Romero's brilliance on this stock and sold it in April.
So when the results flashed across my screen, I felt a little sick inside.
I have been following markets for decades and I've never seen earnings beats this big:
And before you ask, Nvidia (NVDA) isn't even close, at least during its AI era.
Nvidia's biggest EPS beat in the past few years was Q2 of 2024, when it beat by 29%.
SanDisk just beat by 60%.
Crazy stuff.
3) The Semiconductor Chart That Guarantees FOMO
Stanley Druckenmiller once said “Put all your eggs in one basket and then watch that basket very carefully.”
Now look at the semiconductor basket:
Over the past 10 years, SMH has compounded at 36% per year, thanks to huge gains in stocks like Nvidia (NVDA), Broadcom (AVGO), Taiwan Semi (TSM), and AMD (AMD).
SMH has outperformed SPY by over 6-fold, and was kicking butt even before the AI spending boom.
And note: SMH is up 42% this year even though SanDisk is not in the ETF!
By the way, do you know what sector is up even more than SMH?
4. Oil Service Is the True 2026 King
The VanEck Oil Services ETF (OIH) is now up 56% this year:
As you probably know, this is thanks to the massive spike in oil prices following the invasion of Iran. And before that, the removal of Venezuelan President Nicolas Maduro.
Higher oil prices mean more potential oil projects get the green light.
Plus, the greater the US' influence on the world's energy infrastructure, the more business there is for oil service companies.
Just a few days ago, Reuters reported that oilfield service companies are dusting off equipment that was laying dormant in Venezuela.
5. Sentiment Is Neutral
The latest AAII Sentiment Survey shows that 38.1% of investors are bullish.
This is smack-in-the-middle neutral, and a decline from last week's bullish 46.0% reading.
Meanwhile, in the options market, traders are leaning optimistic. The CBOE equity put/call ratio has been around 0.50 this week, signaling modest demand for put options.
This is healthy to see.
Equity markets roared back to life in April with 10%+ gains.
But market participants are not going all-in.
That means there's still cash on the sidelines.