Apple is closing in on a historic $4 trillion stock market valuation, driven by growing investor enthusiasm for the company’s advancements in artificial intelligence and hopes for a revitalized iPhone sales cycle.
Shares of the Silicon Valley tech giant have surged approximately 16% since early November, adding about $500 billion to its market capitalization.
At the last close, Apple was valued at $3.85 trillion, dwarfing the combined market values of Germany and Switzerland’s stock markets.
The recent rally in Apple shares reflects optimism surrounding its artificial intelligence strategy. Analysts believe that the integration of OpenAI’s ChatGPT into Apple devices and the rollout of generative AI technology across its app suite will rejuvenate iPhone sales.
Despite a modest revenue growth forecast for the holiday season, analysts expect iPhone sales to rebound in 2025 as Apple Intelligence features and geographic availability expand.
Apple’s price-to-earnings ratio has reached a near three-year high of 33.5, surpassing tech peers like Microsoft and Nvidia. This elevated valuation has sparked debates among investors about whether Apple’s stock is currently overpriced. Warren Buffett’s Berkshire Hathaway, which holds a significant stake in Apple, has sold shares of the company this year due to concerns over stretched valuations.
Despite potential challenges, including retaliatory tariffs on Chinese imports under the incoming U.S. administration, analysts remain bullish on Apple’s resilience and long-term prospects.
The company’s continued innovation and strong market position are expected to drive further growth in the coming years.
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