Apple, leveraging generative artificial intelligence (AI) capabilities, has reclaimed the top spot in market capitalization, surpassing Microsoft (MS) based on closing prices. This comes just over a week after it had fallen to third place behind AI leader Nvidia. Now, Wall Street is abuzz with speculation about which among Apple, MS, and Nvidia?each having joined the $3 trillion market cap club?will be the first to break through the $4 trillion mark. Analysts agree that AI will be the key factor.
Apple Reclaims No.1 Market Cap Spot, Fueled by AI Integration and iPhone Sales Optimism
On the 13th (local time) in the New York stock market, Apple’s stock closed at $214.24 per share, up 0.55% from the previous session. This marked the third consecutive trading day of record highs since the day after the annual Worldwide Developers Conference (WWDC), where Apple unveiled its AI roadmap.
In terms of market capitalization, Apple recorded approximately $3.285 trillion (about 4,540 trillion KRW), reclaiming its title as the "world’s most valuable company." Following a brief intraday lead over MS the previous day, Apple surpassed MS again based on closing prices for the first time in about five months. MS’s market cap closed at approximately $3.282 trillion, slightly trailing Apple.
The resurgence of Apple to the top spot, after falling to third place behind Nvidia earlier this month, is attributed to expectations of increased iPhone sales driven by AI adoption. Apple, which had been considered relatively behind other big tech companies in the AI race, announced its AI system ‘Apple Intelligence’ and a partnership with OpenAI, the developer of ChatGPT, at WWDC on the 10th.
This has sparked optimism that iPhone sales growth could be accelerated over the coming years, fueling a rally in Apple’s stock price. Bank of America (BoA) noted in an investor memo the previous day that "Apple Intelligence could drive a significant upgrade cycle," predicting that "AI features will lead to faster device replacements, more conversions, and higher average selling prices."
Apple, MS, Nvidia: Intense Market Cap Competition
Wall Street expects the competition for the No.1 market cap position among Apple, MS, and Nvidia to continue for the foreseeable future. As recently as early this month, the market cap rankings were MS, Nvidia, then Apple. Market Inside reported, "The AI rally has boosted the stock prices of Apple, MS, and Nvidia alike," adding that "Apple was the last to join the AI party."
Nvidia, currently ranked third in market cap, saw its stock rise 3.52% to close at $129.61 per share. Its market cap at closing was about $3.194 trillion, not far behind Apple and MS. The market is particularly noting Nvidia’s continued upward momentum following its 10-for-1 stock split, fueled by the AI rally.
Consequently, attention is focused on which of the three companies in the $3 trillion market cap club will be the first to surpass $4 trillion. Wedbush analyst Dan Ives stated in an investor memo released the previous day that "the AI rally that started with Nvidia is now drawing in other tech companies," and predicted "a market cap race to $4 trillion among Nvidia, Apple, and MS." He expects this milestone to be reached sometime next year, implying that all three companies have roughly 20% upside potential from current stock prices.
Economic media outlet Barron's noted, "MS, Nvidia, and Apple are racing toward a $4 trillion market cap," emphasizing that "AI will determine who arrives first." While Barron's considers Nvidia, the current AI leader, the most likely to join the $4 trillion club first given recent demand and rapid growth, it also sees MS and Apple as strong contenders. Their chances depend on the widespread adoption of AI by enterprises and the pace of AI integration in mobile consumer devices.
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