Apple (NASDAQ:AAPL) reclaimed its title as the world’s most valuable company on Wednesday, surpassing Microsoft in market capitalization. The iPhone maker’s advancements in artificial intelligence technology fueled this rise.
Apple’s shares soared nearly 4% to a record $215.04, resulting in a market valuation of $3.29 trillion. In comparison, Microsoft’s market capitalization stood at $3.24 trillion, marking the first time in five months that Apple has overtaken Microsoft.
This stock surge coincided with a record high for the tech-heavy Nasdaq, driven by signs of cooling inflation.
The recent gains in Apple shares, which increased more than 7% in the previous session, followed the company’s unveiling of AI-enabled features and software enhancements for its devices. Analysts believe these developments will boost iPhone sales.
At Apple’s annual developer conference on Monday, CEO Tim Cook and other executives showcased how the voice assistant Siri would now interact with messages, emails, calendars, and third-party apps.
“All those questions about Apple lagging from an AI technology standpoint were answered at the Worldwide Developers Conference,” said Michael James, managing director of equity trading at Wedbush Securities in Los Angeles. “The specifics about AI capabilities integrated into the upcoming iPhones indicate a significant demand for an upgrade cycle.”
Despite trailing behind rivals like Microsoft and Alphabet, Google’s parent company, in AI development, Apple’s recent performance alleviated some concerns about its stock. The company exceeded market expectations for its quarterly results and forecast in May, and announced a record $110 billion buyback plan.
Apple’s shares have risen about 12% in 2024, compared to Microsoft’s 16% increase and Alphabet’s nearly 28% gain. AI chip leader Nvidia, which briefly surpassed Apple’s market value last week, has seen a 154% increase this year, with a market value of $3.11 trillion.
Among the ‘Magnificent Seven’ stocks, only Tesla has performed worse than Apple this year, experiencing a roughly 30% decline.
Featured Image:Megapixl© Bedo
