Apple has reclaimed its status as the world’s most valuable company, surpassing Microsoft in market valuation as of June 12. This leap comes on the heels of Apple’s significant advancements in artificial intelligence (AI) technology.
Apple’s stock surged nearly 4% to a record-breaking $215.04 per share, pushing its market capitalization to $3.29 trillion. In comparison, Microsoft’s market value dropped slightly to $3.24 trillion, marking the first time Apple has outstripped Microsoft in five months.
The climb in Apple’s stock coincided with a new peak for the tech-heavy Nasdaq index, buoyed by promising signs of cooling inflation. The company’s shares had already risen over 7% in the previous session, following the unveiling of a suite of AI-powered features and software updates during its annual developer conference.
Apple’s Worldwide Developers Conference (WWDC) revealed groundbreaking AI enhancements, particularly in its voice assistant, Siri, which now boasts the ability to seamlessly integrate with messages, emails, calendars, and various third-party applications. This development has sparked considerable excitement among analysts, who anticipate it will drive a significant upgrade cycle for iPhones.
Michael James, Managing Director of Equity Trading at Wedbush Securities, remarked, “Apple has decisively addressed concerns about lagging behind in AI technology at the WWDC. The advanced AI functionalities slated for the next generation of iPhones are expected to generate substantial consumer demand.”
Despite trailing behind AI leaders like Microsoft and Google-parent Alphabet in recent times, Apple’s performance has rebounded strongly. This is partly attributed to surpassing market expectations in its latest quarterly earnings report, coupled with the announcement of a record $110 billion stock buyback program.
So far in 2024, Apple’s shares have appreciated by approximately 12%, a figure that, while impressive, still lags behind Microsoft’s 16% and Alphabet’s nearly 28% gains. However, it’s worth noting that Nvidia, a frontrunner in AI chip technology, briefly eclipsed Apple’s market value last week and has surged by 154% this year, with its market cap recently pegged at $3.11 trillion.
Tesla remains the only member of the ‘Magnificent Seven’ tech giants to have performed worse than Apple this year, with its stock sliding about 30%.
Source: Reuters