AI-Powered Apple Surpasses Microsoft to Become the World's Most Valuable Company
Apple surpasses Microsoft to become the world's most valuable company, with a market valuation of US$3.29 trillion. The surge in Apple's stock follows the unveiling of AI-enabled features and software enhancements for its devices. Analysts predict that the upcoming iPhones will drive a significant upgrade cycle due to their advanced AI capabilities.
The iPhone maker's shares soared by nearly 4% to reach a record high of US$215.04, resulting in a market valuation of an astounding $3.29 trillion. This achievement marks the first time in five months that Apple has overtaken Microsoft, whose market capitalisation currently stands at US$3.24 trillion.
The surge in Apple's stock comes amidst the tech-heavy Nasdaq reaching an all-time high, fueled by signs of cooling inflation. Just a day prior to this milestone, Apple unveiled a range of AI-enabled features and software enhancements for its devices, which analysts believe will significantly boost iPhone sales. At the company's annual developer conference, CEO Tim Cook and other executives showcased how the voice assistant Siri will now be able to interact with messages, emails, calendars, and third-party apps.
Michael James, the managing director of equity trading at Wedbush Securities in Los Angeles, expressed his confidence in Apple's AI capabilities, stating, "All those questions about Apple lagging from an AI technology standpoint were answered at the Worldwide Developers Conference." He further emphasised that the upcoming iPhones will integrate advanced AI capabilities, creating a strong demand for a significant upgrade cycle.
While Apple has trailed behind competitors like Microsoft and Google-owner Alphabet in the AI field, this recent development has boosted investor confidence. Concerns over Apple's weak share performance have eased since the company exceeded market expectations for quarterly results in May and announced a record-breaking $110 billion buyback plan.
In terms of stock performance, Apple's shares have risen by approximately 12% so far this year, while Microsoft has seen a gain of about 16% and Alphabet nearly 28%. Notably, AI chip leader Nvidia briefly surpassed Apple's market value last week and has experienced a staggering 154% increase in its stock price this year. Tesla, on the other hand, has been the only other member of the 'Magnificent Seven' stocks to perform worse than Apple, with a slide of around 30%.
Apple surpasses Microsoft to become the world's most valuable company, with a market valuation of US$3.29 trillion.
The surge in Apple's stock follows the unveiling of AI-enabled features and software enhancements for its devices.
Analysts predict that the upcoming iPhones will drive a significant upgrade cycle due to their advanced AI capabilities.
Source: REUTERS