Apple Inc. has once again emerged as the world’s most valuable company, overtaking Microsoft in a head-to-head battle of market giants. This shift is driven by Apple’s recent strides in artificial intelligence technology, pushing its market capitalization to a staggering $3.29 trillion. This rise marks a significant milestone as Apple’s shares (AAPL.O) surged nearly 4% to a record $215.04 on June 12, reflecting investor confidence in the company’s AI capabilities and future prospects.
The climb in Apple’s valuation comes as the Nasdaq Composite Index hits a new peak, spurred by positive economic indicators and cooling inflation rates. Apple’s stock had already increased by over 7% following its annual developer conference, where the company unveiled a suite of AI-driven features designed to enhance the functionality of its devices. This announcement, led by CEO Tim Cook, showcased Siri’s enhanced capabilities to interact seamlessly with messages, emails, calendars, and third-party applications, setting the stage for a robust iPhone upgrade cycle.
Michael James, Managing Director of Equity Trading at Wedbush Securities, noted, “Apple has silenced its critics who doubted its AI prowess. The innovations introduced at the Worldwide Developers Conference make it evident that Apple is poised for a substantial upgrade cycle in its product line.”
Despite trailing tech rivals like Microsoft and Google’s parent company Alphabet in the fiercely competitive AI arena, Apple’s recent moves have significantly boosted its market performance. The tech giant’s shares have rebounded by about 12% in 2024, following a challenging start to the year. This recovery is attributed to Apple’s strong quarterly results and a monumental $110 billion stock buyback plan announced in May.
**In comparison, Microsoft’s market value fell slightly to **$3.24 trillion, ending its five-month run as the most valuable company. Meanwhile, Alphabet has outperformed both with a nearly 28% rise in its share value this year. AI chip leader Nvidia, which briefly eclipsed Apple’s market value last week, currently holds a market cap of $3.11 trillion, driven by an impressive 154% surge in its stock price. Even so, Apple’s resurgence underscores its resilience and strategic pivot towards AI.
Apple’s ability to reclaim its position at the top reflects its innovative edge and strategic investments in AI technology, a field that is rapidly transforming the tech landscape. This milestone highlights the company’s unwavering commitment to maintaining its leadership in the global market, setting a precedent for future advancements in artificial intelligence.
For more details, visit the original Reuters article.