Apple briefly tops $5 trillion market value ahead of earnings, tops Nvidia as world's most valuable company
iPhone maker briefly hits historic valuation milestone as investors bet on steady demand, disciplined AI spending and upbeat earnings outlook
Apple briefly crossed the $5 trillion market capitalisation mark during trading on Tuesday, becoming only the second company in history after Nvidia to reach the milestone, as investors continued to back the iPhone maker ahead of its quarterly earnings later this week.
Apple’s shares touched a record high of $342.89 during the session, taking its market value to about $5.036 trillion before easing later in the day. The stock ended with a valuation of roughly $4.98 trillion, still making Apple the world’s most valuable listed company.
The milestone comes less than two weeks after Apple overtook Nvidia to reclaim the title of the world’s most valuable company, as Nvidia shares came under pressure amid growing investor concerns over the pace and returns of artificial intelligence infrastructure spending. Apple has gained about 25% so far this year, outperforming several of its Big Tech peers, including Microsoft, Alphabet and Meta. Nvidia, meanwhile, is currently valued at about $4.78 trillion.
The chipmaker's stocks were down 5% on Monday, leading a broad pullback across AI-hardware names after reports stated that the company is in talks to guarantee up to $250 billion in financing for OpenAI's data-center buildout. The report has reignited "circular financing" concerns tied to the AI capex cycle. This pulled the market capitalisation lower, giving Apple the advantage to overtake Nvidia.
Not chasing the AI race
Investor optimism around Apple has been driven by resilient iPhone demand, its relatively measured approach to AI spending, and expectations that its earnings due this week will provide greater clarity on its product and AI strategy. Unlike several rivals investing heavily in AI infrastructure, Apple has focused on integrating AI capabilities through partnerships while limiting large capital outlays, helping preserve cash flow and keep debt in check.
The company is also expected to benefit from its pricing strategy. While it raised prices for products such as MacBooks and iPads, it kept iPhone prices unchanged, a move that analysts say has supported demand. Apple recently also introduced a device leasing programme in the US in partnership with Klarna, allowing customers to lease iPhones, iPads, Macs and Apple Watches through monthly payments.
As per reports, Wall Street expects Apple to report a 15% year-on-year increase in revenue for the June quarter when it announces results later this week, with investors closely watching updates on artificial intelligence features and future product strategy.