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Apple’s market valuation jumped above $5tn for the first time on Tuesday, in a sign of the iPhone maker’s role as a haven for tech investors amid a deepening sell-off in AI and semiconductor stocks.
Shares in Apple rose as much as 1.3 per cent on Tuesday to push it over the $5tn threshold, making it only the second company ever, after AI chipmaker Nvidia, to reach that market capitalisation.
The milestone comes a day after Apple passed Nvidia to reclaim its crown as the world’s most valuable company for the first time since May last year.
Apple’s share price has increased by about a quarter this year. In contrast, Nvidia has fallen from its May peak amid a recent sharp sell-off in the semiconductor sector, leaving it up about 7 per cent for the year.
On Tuesday, Apple’s shares pared early gains to trade up 0.4 per cent on the day, leaving it just below the $5tn mark.
Unlike many of its Silicon Valley neighbours, Apple has largely resisted making huge capital investments in AI infrastructure since the debut of ChatGPT in late 2022 kick-started a spending frenzy among the “hyperscalers” — Microsoft, Amazon, Google and Meta.
At the same time, Apple is slowly starting to shake off its reputation as an AI laggard, with early testing of its revamped Siri virtual assistant receiving broadly positive reviews ahead of a full rollout expected this year.
Tech investors took fright at Google parent Alphabet’s plans — announced alongside earnings last week — to further increase capital spending this year to as much as $205bn, as well as a free cash flow of minus $5.9bn.
Apple is due to publish its latest quarterly results later this week, along with other Big Tech groups.
Source:
www.ft.com
