Apple Inc. is poised to become the first company to achieve a $4 trillion market capitalization, driven by its recent advancements in artificial intelligence and a resurgence in iPhone sales.
The tech giant’s stock has surged approximately 16% since November, adding nearly $500 billion to its market value.
As of December 23, Apple shares traded around $255, pushing its total valuation to $3.86 trillion, marking a 40% increase year-to-date, reported the New York Post. Industry analysts attribute this growth to heightened investor confidence in AI’s potential to spur a new cycle of iPhone upgrades.
Apple now leads competitors Nvidia and Microsoft in the race to this monumental milestone. While Nvidia has experienced an astounding 184% growth in 2024, it remains behind at $3.35 trillion due to recent investor concerns over its new AI chip, Blackwell. Meanwhile, Microsoft trails at $3.22 trillion, bolstered by its investment in OpenAI, the creator of ChatGPT, per the Post.
The catalyst for Apple’s stock rally is its latest AI enhancements, unveiled in the iOS 18.2 update. These features include Visual Intelligence, which translates and summarizes text, and Image Playground, an AI-powered tool for generating images from descriptions. However, these updates are exclusively available on the iPhone 15 Pro and iPhone 16 models, adding to their appeal.
Analysts project strong sales for these devices during the holiday season, further solidifying Apple’s market position. Wedbush analyst Daniel Ives predicts Apple’s stock could surpass $300 per share within a year, propelling the company beyond the $4 trillion mark by early 2025.
Apple’s resurgence comes after a period of declining iPhone sales.
During its fiscal fourth quarter ending in September, the company reported $46.22 billion in iPhone revenue, a 6% increase from the previous year. This marked a significant rebound following two consecutive quarters of declining year-over-year sales, reported the Post. The improved performance is attributed to Apple’s strategic integration of AI, which has revitalized interest in its flagship product.
CEO Tim Cook has emphasized the company’s commitment to leveraging AI to enhance user experiences and drive growth across its product portfolio. These efforts align with Apple’s broader vision of maintaining its status as an innovation leader in a competitive tech landscape.
Analysts predict that Apple’s continued emphasis on innovation will ensure its dominance in the market, paving the way for sustained success. With AI and iPhone sales as key drivers, Apple is well-positioned to achieve its ambitious goals and set new benchmarks for the industry, per the Post.