In a significant development on Wednesday, Apple reclaimed its position as the world’s most valuable company, surpassing Microsoft. This resurgence is fueled by the iPhone maker’s ambitious advancements in artificial intelligence technology, marking a pivotal moment in the tech industry.
Apple’s shares soared nearly 4% to reach a record $215.04, pushing its market valuation to an impressive $3.29 trillion. This leap allowed Apple to overtake Microsoft, whose market capitalization stood at $3.24 trillion, marking the first time in five months that Apple has led the pack.
The stock surge coincided with the tech-heavy Nasdaq hitting a record high, buoyed by encouraging signs of cooling inflation. Apple’s shares had already gained more than 7% in the previous session, following the unveiling of a suite of AI-enabled features and software enhancements aimed at boosting iPhone sales.
At the recent Worldwide Developers Conference, Apple executives, including CEO Tim Cook, showcased significant AI advancements. These include new capabilities for the voice assistant Siri, which will now be able to interact more seamlessly with messages, emails, calendars, and third-party apps. This development has addressed previous concerns about Apple lagging in AI technology.
Despite trailing behind rivals such as Microsoft and Google-owner Alphabet in the AI arena, Apple’s recent strides are closing the gap. The tech giant’s shares had underperformed earlier this year, but this trend started to reverse after Apple exceeded market expectations for its quarterly results and forecasts in May, coupled with the announcement of a record $110 billion buyback plan.
So far in 2024, Apple’s shares have increased by about 12%, while Microsoft has seen a 16% rise, and Alphabet nearly 28%. AI chip leader Nvidia, which briefly surpassed Apple’s market value last week, has experienced a staggering 154% increase this year, with a recent market value of $3.11 trillion.
