Apple briefly reclaimed its title as the world's most valuable company on Wednesday, surpassing Microsoft with a boost from its advancements in artificial intelligence technology.
However, the triumph was short-lived. According to Dow Jones Market Data, Apple closed with a market value of $3.267 trillion, slightly trailing Microsoft's $3.278 trillion. Apple managed to increase its market value by $305.9 billion over the past two days.
According to Kantar, Apple maintained its status as the world's most valuable brand for the third consecutive year in 2024, with Alphabet's Google valued at $753 billion and Microsoft at $713 billion following closely behind. Apple's shares surged nearly 4% to a record $215.04, elevating its market valuation to $3.29 trillion. In comparison, Microsoft's market capitalisation fell to $3.24 trillion, marking the first time in five months that it has lagged behind Apple.
This surge in Apple's stock coincided with the tech-heavy Nasdaq reaching a record high amid indications of cooling inflation. Earlier this week, Apple introduced new AI features anticipated to rekindle demand for iPhones and mitigate a sales decline caused by fluctuating consumer spending and increased competition from tech rivals.
Apple's shares had already risen over 7% in the previous session following the unveiling of a range of AI-enabled features and software enhancements. Analysts predict these innovations will drive iPhone sales, Reuters noted.
At Apple's annual developer conference on Monday, CEO Tim Cook and other executives demonstrated how the voice assistant Siri would interact with messages, emails, calendars, and third-party apps. "The questions about Apple lagging in AI technology were answered at the Worldwide Developers Conference," Michael James, managing director of equity trading at Wedbush Securities in Los Angeles told Reuters. He highlighted that the AI capabilities integrated into upcoming iPhones suggest a significant upgrade cycle demand.
Historically, Apple has trailed behind rivals such as Microsoft and Alphabet in the AI field, contributing to its relative underperformance in the stock market this year. However, concerns eased after Apple surpassed market expectations for quarterly results and forecasts in May and announced a record $110 billion buyback plan.
In 2024, Apple's shares have risen about 12%, while Microsoft and Alphabet have seen gains of approximately 16% and 28%, respectively. AI chip leader Nvidia, which briefly overtook Apple's market value last week, has soared 154% this year, with a market value last reported at $3.11 trillion. Among the 'Magnificent Seven' stocks, Tesla is the only one that has performed worse than Apple this year, with a nearly 30% decline.
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