[Financial News]
On the 12th (local time), Apple surpassed Microsoft Corporation (MS) and reclaimed the top spot in market capitalization.
After a surge of over 7% the previous day, Apple continued its steep rise, soaring 4.6% in morning trading.
The market capitalization reached $3.3 trillion, surpassing MS’s $3.2 trillion.
Apple, which had conceded the top spot in market capitalization to MS on January 12, reclaimed the position after five months.
Apple’s announcement of its artificial intelligence (AI) strategy at this year’s Worldwide Developers Conference (WWDC2024), which started on the 10th for a five-day schedule, played a role in the surge of Apple’s stock prices.
Investors were initially unimpressed with Apple’s AI strategy on the 10th, selling off shares. However, they gave a generous evaluation the next day on the 11th.
In particular, expectations have grown that the demand for iPhone upgrades will strengthen as Apple emphasized that utilizing AI features requires improved specifications from iPhone 15, which was launched last fall.
Morgan Stanley significantly raised Apple’s target price to $270, and Bank of America (BofA) was optimistic that the demand for iPhone upgrades would significantly increase.
Evercore ISI expected that Apple will allow only iPhones launched since last year to utilize its own AI, Apple Intelligence, leading the iPhones to enter a super cycle.
Although Apple is a latecomer in AI, expectations are growing that it will dominate the AI smartphone market with its strong software.
Even though Apple has regained the top spot by surpassing MS, the fight for the position is not over. The stocks of MS and Nvidia ranked 2nd and 3rd, also soared significantly.
As of 12 PM Eastern Time, MS rose by $6.41 (1.48%) to $439.09, and Nvidia surged $4.37 (3.61%) to $125.28.
Apple traded at $216.33, up $9.18 (4.43%).
As of noon, the market capitalization is $3.317 trillion for Apple, $3.265 trillion for MS, and $3.084 trillion for Nvidia.
Meanwhile, after hitting a low of $165.00 on April 19, Apple’s stock price rebounded on expectations for the WWDC. The stock price has soared 31% to date.
