STORY: :: Lisa Bernhard, Reuters

:: Kevin Mahn, President and Chief Investment Officer, Hennion & Walsh Asset Management

Nvidia's shares rallied more than 7% to hit a record high on Tuesday, leaving the AI chipmaker's stock market value about $100 billion away from overtaking Apple in a major reshuffle of Wall street's biggest players.

Nvidia's shares have surged nearly 13% since it forecast second-quarter revenue above Wall Street expectations last week and announced a stock split.

Speaking with Reuters' Lisa Bernhard, Mahn noted how the "AI poster child" is looking to "invest massively in their data center business and provide holistic AI solutions as opposed to [just] the chips component."

As for Apple, whose shares this year have lagged its megacap tech peers, Mahn said that while he expects it to invest heavily in AI, "I don't anticipate any significant [stock] price performance over the short term while they're making those types of investments."

Apple shares were down in afternoon trading despite data showing an uptick in iPhone sales in China.

Mahn also discussed Tuesday's surprisingly strong consumer confidence data, adding that with stubborn inflation and a rising unemployment rate he doesn't see "what they're so optimistic about."