- Apple briefly surpassed $5 trillion in market capitalization for the first time, making it only the second company ever to achieve this milestone after Nvidia.
- At a session high of $342.89, Apple's market value stood at $5.036 trillion before easing back to around $4.99 trillion.
- Investors have been fleeing AI and semiconductor stocks amid a wider tech sell-off, benefiting Apple in the process.
- Analysts have attributed the tech sell-off to renewed worries over AI investment spending and competition from cheaper Chinese companies.
- Apple's decision to hold iPhone prices steady last month has bolstered demand for its flagship device ahead of expected price hikes later this year.
- Including session gains, Apple stock has jumped 24% so far this year, outperforming other major US technology stocks.
- Apple has been shielded somewhat from the AI sell-off due to being an AI laggard, relying on Google's technology for new services.
- The company's difficulties in developing in-house AI models have led it to rely on external technologies like Google's for services such as Siri.
- Apple is set to report its third-quarter earnings after the market close on Thursday, with analysts expecting a more than 15% jump in quarterly revenue from a year earlier.
Apple's market capitalization briefly surpassed $5 trillion on Tuesday, making it only the second company to achieve this milestone after Nvidia. The iPhone maker's shares hit a session high of $342.89, reflecting a 24% increase this year, significantly outperforming other major tech companies.12
This surge comes as investors flee from AI and semiconductor stocks amid a broader tech sell-off, driven by rising concerns over AI companies' borrowing for datacentre expansion. Analysts noted that competition from cheaper Chinese companies has also contributed to the sell-off, particularly after China began mass production of homegrown deep ultraviolet (DUV) chip-making tools.3
Interestingly, Apple has been somewhat shielded from these pressures due to its status as an AI laggard, relying on Google's technology for services like Siri. The company's decision to maintain iPhone prices has also bolstered demand, as consumers anticipate price hikes later this year. Apple's stock has gained about 25% so far this year, outperforming other 'Magnificent 7' tech companies, including Nvidia, Meta, Alphabet, and Microsoft.7
Looking ahead, Apple is set to report its third-quarter earnings on Thursday, with analysts expecting a more than 15% jump in quarterly revenue from the previous year.9
“Apple's stock reached a session high of $342.89, pushing its market value to $5.036 trillion, making it the second company to hit this milestone after Nvidia. The company's stock has surged about 25% this year, outperforming other major tech firms amid concerns over AI investment spending.”
The Guardian
