Apple surpasses Microsoft to become the world's most valuable company again

Apple's market valuation hits $3.29 trillion

Apple recaptured its status as the world's most valuable company on Wednesday, beating Microsoft as the iPhone maker pushed ahead in the fight to dominate artificial intelligence technology. Apple's stock jumped nearly 4 per cent to a record $215.04, bringing its market capitalisation to $3.29 trillion. In contrast, Microsoft's market value was $3.24 trillion, marking the first time in five months that it trailed Apple. This market rally coincides with the tech-heavy Nasdaq reaching a new high, aided by hints of slowing inflation.

AI advances fuel stock surge

The recent leap in Apple's shares followed a 7 per cent increase in the previous session, in response to the company's announcement of AI-enabled features and software upgrades for its devices. Analysts predict that these developments will considerably increase iPhone sales. At Apple's annual developer conference on Monday, CEO Tim Cook and other executives demonstrated how the speech assistant Siri can now interact with texts, emails, calendars, and third-party apps. "All those questions about Apple's lag in AI technology were answered at the Worldwide Developers Conference," said Michael James, managing director of equity trading for Wedbush Securities in Los Angeles. The inclusion of AI capabilities in the next iPhones is expected to spark a big upgrade cycle, boosting demand for Apple's flagship product.

Apple's competitive edge in AI

Despite trailing competitors such as Microsoft and Alphabet in the AI industry, Apple's latest developments have alleviated concerns about its market performance. The computer giant's shares had trailed peers this year, but a good quarterly performance and a record $110 billion buyback plan unveiled in May have improved investor confidence. Apple's stock has climbed by around 12 per cent in 2024, while Microsoft's has increased by 16 per cent and Alphabet's by roughly 28 per cent.

Nvidia and other competitors

In the broader IT environment, AI chip leader Nvidia, which temporarily surpassed Apple's market worth last week, has seen its shares rise by 154 per cent this year, with a market capitalisation of $3.11 trillion. Meanwhile, Tesla is the only other 'Magnificent Seven' stock to have performed worse than Apple this year, with a 30 per cent drop. Despite these hurdles, Apple's strategic focus on AI, as well as its ongoing product innovation, demonstrate the company's resilience and capacity to sustain its technological leadership.

(With inputs from agencies)