Apple Inc. has once again secured its position as the world’s most valuable company, surpassing Microsoft in a dramatic stock surge. On June 12, Apple’s shares (AAPL) soared nearly 4% to a record high of $215.04, propelling its market valuation to an impressive $3.29 trillion. This leap positioned Apple ahead of Microsoft, whose market capitalization fell to $3.24 trillion, marking the first time in five months that Microsoft has been dethroned.
The catalyst for Apple’s resurgence was its recent unveiling of a suite of AI-driven enhancements and features at the Worldwide Developers Conference (WWDC). This includes advanced capabilities for its voice assistant, Siri, which will now be able to interact seamlessly with messages, emails, calendar events, and third-party applications. This strategic move is expected to drive a significant upgrade cycle for iPhones, addressing previous concerns that Apple was lagging behind competitors in the AI technology space.
The stock market reacted favorably to Apple’s announcements, with the tech-heavy Nasdaq hitting a record high amid signs of cooling inflation. Analysts have highlighted that Apple’s new AI capabilities will likely fuel demand for its products, particularly the iPhone. Michael James, managing director of equity trading at Wedbush Securities, commented, “All those questions about Apple lagging from an AI technology standpoint were answered at the WWDC. The specifics about AI capabilities that are going to be integrated into the upcoming iPhones made it very apparent that there will clearly be demand for a significant upgrade cycle.”
Despite previous underperformance relative to peers, Apple’s recent advancements and a robust buyback plan have rekindled investor confidence. Apple has seen a 12% increase in its share value so far in 2024, though it still trails behind Microsoft’s 16% and Alphabet’s 28% gains. Additionally, AI chip leader Nvidia, which briefly surpassed Apple’s market value last week, has surged 154% this year. In contrast, Tesla has experienced a 30% decline, making it the only other ‘Magnificent Seven’ stock to perform worse than Apple in 2024.
This stock surge comes as part of a broader positive trend for technology stocks, driven by optimism around AI advancements and a strong performance in the tech sector overall.
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