iCahn Is Bullish On The iCahn-omy

Carl Icahn disclosed on Twitter Tuesday that he had taken a large stake in Apple AAPL.

However, he already may have hinted that he is bullish on the smartphone maker's business months ago with a different investment.

A Nuanced Investor

As of August 7, Icahn Enterprises IEP owns 16.41 percent of Nuance Communications NUAN, the company that provides Apple's Siri voice recognition software. However, Apple only makes up a tiny fraction of Nuance's revenue, as reported by Bloomberg.

Icahn is bullish both of the stocks though and shows that he is not only bullish on Apple products, but bullish on the industry as a whole. Also, he is looking for higher capital returns for Apple shareholders, a move which, in tandem with a product refresh cycle coming shortly, could lead to gains for shareholders.

Tweet the Street

Icahn took to Twitter to disclose his stake today. First, he tweeted:

We currently have a large position in APPLE. We believe the company to be extremely undervalued. Spoke to Tim Cook today. More to come.

— Carl Icahn (@Carl_C_Icahn) August 13, 2013

Then, he said:

Had a nice conversation with Tim Cook today. Discussed my opinion that a larger buyback should be done now. We plan to speak again shortly.

— Carl Icahn (@Carl_C_Icahn) August 13, 2013

Shares Higher On the Icahn Bump

Apple shares rallied on the session to a high of $494.66 per share before trading back tot he $490 level. The move took Apple shares to the highest level since January.

Nuance shares rose 1.89 percent on the session gaining to $19.70 per share. Other suppliers to Apple moved on the news as well including Jabil Circuit JBL, Teradyne TER, Broadcom BRCM, Teradata TDC, Google GOOG, Cirrus Logic CRUS, and Qualcomm QCOM.