Apple Briefly Joins $5tn Club

Apple briefly became only the second company in history to surpass a market capitalization of $5tn on Tuesday, joining Nvidia in reaching the milestone.

Shares of the iPhone maker climbed as high as $342.89 during trading, lifting the company's market value to $5.036 trillion. The stock later pared some gains to trade at $337.70, giving Apple a market capitalization of about $4.96tn.

Apple reclaimed the title of the world's most valuable company earlier this month, overtaking Nvidia. The rally has been fueled by strong demand for its products and investor confidence in the company's decision to avoid the massive artificial intelligence spending that has weighed on many of its rivals.

“Apple has resisted the AI spending race and bet that the customer experience, not infrastructure investments, will ultimately determine the winners”, Forrester analyst Dipanjan Chatterjee said.

Apple's shares have gained 24% since the start of the year. The company is scheduled to report its third-quarter earnings on Thursday after the market closes, with analysts expecting revenue to increase by more than 15% from a year earlier.

(Reuters, bak)