Apple overtook Microsoft becoming the world’s most valuable company again flanked by improving investor sentiment over its growth and position with artificial intelligence. Apple’s stock witnessed a blistering rally making it the biggest three-day advance in the shares since August 2020. It closed with a market capitalization of $3.285 trillion in contrast with Microsoft at $3.282 trillion. Since January, this marks the first time that Apple closed with a higher market value than Microsoft.
Earlier this week, Apple closed in third place behind Nvidia Corp. Rhys Williams, chief strategist at Wayve Capital Management, said, “People have a high degree of conviction that they will be an AI winner, and it seems like this is a market where if you’re an AI winner, you’re being bid up a lot. I assume both Microsoft and Apple will be somewhat of a horse race for the foreseeable future with Nvidia also in contention.”
Rise in Apple’s shares comes after the company’s AI-focused Worldwide Developers Conference presentation that fueled hopes of a long-awaited rebound in growth as the company’s revenue has fallen 4.3% in fiscal second quarter making it the fifth contraction in the past six quarters.
Bank of America analyst Wamsi Mohan wrote, “AI functionality is likely to drive a multi-year upgrade cycle from faster replacement, more switching, and ASP increases. Apple Intelligence can drive a significant upgrade cycle and consensus estimates are too low.”
Apple also announced a $110 billion buyback plan, the largest buyback program in US history.
