As a result of investors applauding the company’s long-awaited AI improvements to boost slow iPhone sales, Apple is finally approaching a historic $4 trillion stock market valuation.
The company’s roughly 16% share price increase since early November has increased its market value by over $500 billion, putting it ahead of Nvidia and Microsoft in the race to reach the historic milestone.
Tom Forte, an analyst at Maxim Group with a “hold” rating, stated that the recent surge in Apple stock shows “investor enthusiasm for artificial intelligence and an expectation that it will result in a supercycle of iPhone upgrades.”
With a valuation of over $3.85 trillion as of the most recent close, Apple surpasses the combined value of Switzerland’s and Germany’s main stock markets.
According to the so-called iPhone supercycles, the Silicon Valley Corporation was the first in the United States to reach trillion-dollar milestones.
Laptops 1000The business has been criticized in recent years for taking too long to develop its artificial intelligence strategy, as competitors like Microsoft, Alphabet, Amazon, and Meta Platforms have jumped ahead to take the lead in this developing field.
As the largest AI benefit, Nvidia’s stock has increased by almost 800% in the last two years, while Apple’s stock has nearly doubled in the same time frame.
After announcing ambitions in June to incorporate generative AI technology throughout its app suite, Apple began incorporating OpenAI’s ChatGPT into its devices earlier in December.
There are concerns over the momentum for the iPhone 16 series as the business projects a modest growth estimate for the holiday shopping season. Overall revenue is expected to rise by “low—to mid-single digits” during its fiscal first quarter.
Analysts, however, predicted that iPhone sales will increase in 2025, according to LSEG statistics.
“Although near-term iPhone demand is still muted … it is a function of limited Apple Intelligence features and geographic availability, and as both broaden, it will help to drive an improvement in iPhone demand,” Morgan Stanley analyst Erik Woodring said in a note, reiterating Apple as the brokerage’s “top pick” heading into 2025.
