Apple reclaimed its position as the world’s most valuable company, surpassing Microsoft, as it surged ahead in the race to lead artificial intelligence technology. With its shares increasing over 2% to $211.75, Apple's market value reached $3.25 trillion, edging out Microsoft whose market capitalization of $3.24 trillion placed it behind Apple for the first time in five months.
Apple's shares reached a record peak following the unveiling of a series of AI-driven features and software updates for its products. Analysts predicted these advancements would significantly boost iPhone sales. During Apple's annual developer conference, CEO Tim Cook and other executives showcased enhancements that enable Siri, the voice assistant, to engage with messages, emails, calendars, and third-party applications.
The tech giant has trailed rivals such as Microsoft and Google-owner Alphabet in the red-hot field of AI, a reason why its shares underperformed this year compared to its peers. Apple’s shares are up about 10% so far in 2024, while Microsoft has added about 16% and Alphabet nearly 28%. Some of the concerns over its weak share performance eased after Apple beat market expectations for quarterly results and forecast in May and unveiled a record $110 billion buyback plan.
Nvidia, the leading company in AI chips, saw its market value soar by 144% this year, briefly surpassing Apple's valuation last week. Nvidia's current market cap stands at $3.06 trillion. Among the 'Magnificent Seven' stocks, Tesla is the only other company besides Apple that has experienced a decline this year, with its stock falling over 30%.