Apple Reclaims Title as World's Most Valuable Company, Surpassing Microsoft Amid AI Advancements

Apple Reclaims Title as World's Most Valuable Company, Surpassing Microsoft Amid AI Advancements

Apple reclaimed its title as the world's most valuable company on Wednesday, surpassing Microsoft as the iPhone maker advances in the artificial intelligence technology race.

Apple's shares surged nearly 4% to a record $215.04, pushing its market valuation to $3.29 trillion. Microsoft's market capitalization, in contrast, stood at $3.24 trillion, marking the first time in five months it has trailed behind Apple.

This stock increase coincides with the tech-heavy Nasdaq reaching a record high, driven by signs of cooling inflation. Apple shares had risen more than 7% the previous day, following the unveiling of new AI-enabled features and software enhancements for its devices, which analysts believe will boost iPhone sales.

During Apple's annual developer conference on Monday, CEO Tim Cook and other executives highlighted how voice assistant Siri would integrate with messages, emails, calendars, and third-party apps.

"Apple addressed concerns about lagging in AI technology at the Worldwide Developers Conference," said Michael James, managing director of equity trading at Wedbush Securities. "The AI capabilities in the upcoming iPhones suggest strong demand for a significant upgrade cycle."

Apple has been behind rivals like Microsoft and Google-owner Alphabet in AI, leading to its shares underperforming this year. However, concerns eased after Apple exceeded market expectations for quarterly results in May and announced a record $110 billion buyback plan.

Apple's shares have increased by about 12% in 2024, while Microsoft's have risen 16% and Alphabet's nearly 28%. Nvidia, an AI chip leader, briefly surpassed Apple's market value last week and is up 154% this year, with a market value of $3.11 trillion. Tesla is the only other "Magnificent Seven" stock performing worse than Apple this year, with a 30% decline.