Apple, the maker of iPhones, briefly outgrew its competitor Microsoft as the world’s most valued company, owing to recent AI advancements.
Apple and Microsoft are the two most valued companies globally and the biggest brands in the AI space. While Microsoft has remained at the top for over five months on the stock market charts, Apple outranked it as the most valued company on Wednesday, reaching an intraday high record of $220.20. Apple's market capitalization stood at $3.27 trillion and closed at $213.07 by the end of the trading day.
While retailers were the biggest buyers on Apple’s Wednesday charts, the company came back to its second position as Microsoft ended its trading day at a market capitalization of $3.28 trillion. This shows clear signs of the impact of global inflation cooling down. The overnight surge in Apple’s valuation came right after Apple announced the launch of multiple AI features, including its in-house Apple Intelligence ecosystem.
Apple has launched new AI features and software enhancements for a diverse range of device platforms with M series chips in them. Right after the revelation, Apple’s shares splurted by 7% on Tuesday, reaching a record-high on Wednesday. The WWDC conference 2024 clarified Apple’s position in the AI space, with all the details needed for retail investors and institutions to build intent to invest.
It is noteworthy that Apple has remained in the backseat of the AI boom for the last two years. Even though it was the only company that offered virtual assistance in the form of world-renowned Siri, the rapid growth of AI chatbots reduced user interest in interacting with less smart technology. “Some of the specifics about AI capabilities that are going to be integrated into the upcoming iPhones made it very apparent that there will clearly be demand for a significant upgrade cycle,” said Michael James, managing director of equity trading at Wedbush Securities in Los Angeles.
Initially, Apple outsourced its intelligence capabilities, resulting in new partnerships with OpenAI to integrate ChatGPT at the OS level. Elon Musk has shared his disgruntled opinion regarding this move, threatening the company to ban it from his workspace over privacy risks. With a positive response from the stock market, Apple can continue its AI pursuit with full force.
