Apple is nearing a historic $4 trillion valuation, fueled by investors betting the company\u2019s much-anticipated artificial intelligence improvements will revive sluggish iPhone sales.<\/p>\n\n\n\n
The company has led Nvidia and Microsoft in the race to the monumental milestone, thanks to a roughly 16% jump in shares since early November that has added about $500 billion to its market capitalization.<\/p>\n\n\n\n
Apple\u2019s stock rally<\/strong><\/p>\n\n\n\n Apple\u2019s latest rally reflects \u201cinvestor excitement about artificial intelligence and the expectation that it will lead to a supercycle of iPhone upgrades.\u201d<\/p>\n\n\n\n With a market value of about $3.85 trillion as of the last close, Apple dwarfs the combined value of the German and Swiss stock exchanges.<\/p>\n\n\n\n The Silicon Valley company, driven by the so-called iPhone supercycle, was the first American company to reach the previous trillion-dollar milestone.<\/p>\n\n\n\n In recent years, Apple has been criticized for being slow to outline its strategy on artificial intelligence, while Microsoft, Alphabet, Amazon and Meta Platforms have moved to dominate the emerging technology.<\/p>\n\n\n\n Nvidia shares, perhaps the biggest gainer in the AI \u200b\u200brace, have risen more than 800% in the past two years, compared with Apple shares nearly doubling over the same period.<\/p>\n\n\n\n Apple earlier in December began integrating OpenAI\u2019s ChatGPT into its devices, after revealing plans in June to integrate the creative AI into its suite of apps.<\/p>\n\n\n\n The company expects overall revenue to grow \u201clow to mid-single digits\u201d during its fiscal first quarter \u2014 a modest growth forecast for the holiday shopping season \u2014 raising questions about the momentum for the iPhone 16 lineup.<\/p>\n\n\n\n Market estimates<\/strong><\/p>\n\n\n\n However, LSEG data showed that analysts expect iPhone revenue to rebound in 2025.<\/p>\n\n\n\n The recent rally in shares has pushed Apple\u2019s price-to-earnings ratio to a near three-year high of 33.5, compared with 31.3 for Microsoft and 31.7 for Nvidia, according to LSEG data.<\/p>\n\n\n\n Warren Buffett\u2019s Berkshire Hathaway has sold Apple shares \u2014 its top holding \u2014 this year as the group largely exited the stock amid concerns about overvalued stocks.<\/p>\n\n\n\n The Geopolitical Risk Benchmark<\/p>\n\n\n\n Apple faces the risk of retaliation if U.S. President-elect Donald Trump follows through on his promise to impose tariffs of at least 10% on goods coming from China.<\/p>\n\n\n\n Apple shares fell on Wednesday amid a decline on Wall Street after the Federal Reserve forecast a slower pace of interest rate cuts next year, but investors expect the broad trend of monetary easing to support stock markets next year.<\/p>\n\n\n\n The Fed\u2019s action could end up having a bigger impact on some of the other cyclical sectors, such as consumer discretionary and financials, and less on technology.<\/p>\n\n\n\n Apple\u2019s approach to $4 trillion in market cap is a testament to its continued dominance in the technology sector. This milestone reinforces Apple’s position as a market leader and innovator.<\/p>\n","protected":false},"excerpt":{"rendered":" Apple is nearing a historic $4 trillion valuation, fueled by investors betting the company\u2019s much-anticipated artificial intelligence improvements will revive sluggish iPhone sales. The…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[620,946],"tags":[919,3174,6350,6351,3896],"class_list":["post-21989","post","type-post","status-publish","format-standard","hentry","category-business","category-companies","tag-apple","tag-company","tag-innovator","tag-market-cap","tag-wall-street"],"_links":{"self":[{"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=\/wp\/v2\/posts\/21989","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=21989"}],"version-history":[{"count":1,"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=\/wp\/v2\/posts\/21989\/revisions"}],"predecessor-version":[{"id":21991,"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=\/wp\/v2\/posts\/21989\/revisions\/21991"}],"wp:attachment":[{"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=21989"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=21989"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=21989"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}