AI-Powered Apple Overtakes Microsoft as World’s Most Valuable Company

Apple has reclaimed its title as the world’s most valuable company, surpassing Microsoft for the first time in five months. This milestone underscores Apple’s expanding influence in artificial intelligence (AI) and its strategic advancements in the tech sector.

Apple’s stock (AAPL.O) surged by nearly 4%, reaching a record high of $215.04. This propelled the company’s market valuation to an unprecedented $3.29 trillion, narrowly eclipsing Microsoft’s (MSFT.O) valuation of $3.24 trillion. The shift reflects Apple’s aggressive push into AI, highlighted by recent product and feature announcements that have captivated both investors and tech enthusiasts.

The remarkable rally in Apple’s stock coincides with a broader upswing in the tech-heavy Nasdaq (IXIC), which hit a record high due to encouraging signs of cooling inflation. This surge followed Apple’s annual Worldwide Developers Conference (WWDC), where the company unveiled a suite of AI-enhanced features. Among these innovations are enhancements to Siri, allowing it to seamlessly interact with messages, emails, calendars, and third-party applications.

Michael James, managing director of equity trading at Wedbush Securities, remarked, “All those questions about Apple lagging from an AI technology standpoint were answered at the Worldwide Developers Conference. The specifics of the AI capabilities that will be integrated into the upcoming iPhones have made it clear that there is substantial demand for a significant upgrade cycle.

Apple has been playing catch-up in the AI domain, lagging behind rivals such as Microsoft and Google’s parent company Alphabet (GOOGL.O). This has contributed to its relatively weaker share performance earlier this year compared to its peers. However, Apple’s recent quarterly results exceeded market expectations, and the announcement of a record $110 billion buyback plan has restored investor confidence. As a result, Apple’s shares have climbed about 12% in 2024, in comparison to Microsoft’s 16% rise and Alphabet’s nearly 28% surge.

Nvidia (NVDA.O), the leader in AI chips, briefly surpassed Apple’s market value last week. Nvidia’s stock has soared an astounding 154% this year, reaching a market value of $3.11 trillion. Among the ‘Magnificent Seven’ tech stocks, only Tesla (TSLA.O) has fared worse than Apple, with a significant 30% decline in its stock value.

For more detailed coverage, visit Reuters.