On Wednesday, Apple reclaimed its position as the world’s most valuable company, overtaking Microsoft. The iPhone maker’s shares surged nearly 4% to a record $215.04, giving it a market valuation of $3.29 trillion, while Microsoft’s market capitalization fell to $3.24 trillion, marking Apple’s lead for the first time in five months.
This stock surge coincided with the tech-heavy Nasdaq hitting a record high amid signs of cooling inflation. Apple shares had already increased by over 7% in the previous session, following the unveiling of AI-enabled features and software enhancements for its devices. Analysts believe these advancements will drive iPhone sales.
At Apple’s annual developer conference on Monday, CEO Tim Cook and other executives showcased how Siri, the voice assistant, would now interact with messages, emails, calendars, and third-party apps. Michael James, managing director of equity trading at Wedbush Securities in Los Angeles, noted, “All those questions about Apple lagging from an AI technology standpoint were answered at the Worldwide Developers Conference.” He emphasized that the new AI capabilities in upcoming iPhones would likely trigger a significant upgrade cycle.
Despite trailing behind rivals like Microsoft and Alphabet in AI development, Apple’s stock performance has recently improved. This turnaround came after the company exceeded market expectations in its quarterly results and announced a record $110 billion buyback plan in May.
So far in 2024, Apple’s shares have risen by about 12%, while Microsoft’s have increased by roughly 16%, and Alphabet’s by nearly 28%. Nvidia, a leader in AI chips, briefly surpassed Apple’s market value last week and has seen a remarkable 154% increase this year, with a market value last reported at $3.11 trillion. Among the ‘Magnificent Seven’ stocks, only Tesla has performed worse than Apple this year, with a decline of about 30%.