On Tuesday, Apple made history by becoming only the third company to surpass the $4 trillion market value milestone. This remarkable achievement was fueled by a slight increase in Apple shares during early trading, which allowed the tech giant to briefly exceed this historic threshold. However, at the close of the trading day, Apple’s market value settled at approximately $3.99 trillion.
In comparison, Nvidia and Microsoft had both crossed the coveted $4 trillion mark earlier in July. As of Tuesday's market close, Nvidia's market valuation soared to an impressive $4.88 trillion. Meanwhile, Microsoft also regained its position above the benchmark, reaching $4.03 trillion, largely driven by reports indicating that its stake in OpenAI could be valued at $135 billion.
This year, Apple has notably lagged behind several of its Big Tech competitors amid concerns regarding its advancements in artificial intelligence. To date, Apple has only achieved a modest 7.5% increase in its stock value for 2025, significantly trailing behind Nvidia's staggering 50% gain, Alphabet's 42%, and Meta Platforms' 28%. In contrast, the broader S&P 500 index has risen by 18% this year.
However, recent developments suggest that Apple’s fortunes may be shifting. A federal judge ruled in early September that Google would not be required to divest its Chrome browser business, a decision that ultimately benefited Apple. The ruling allowed Google to continue paying Apple billions of dollars annually to have its search engine preloaded on devices, including iPhones.
In mid-September, Apple launched its latest iPhones, including the new ultra-slim iPhone Air. Despite initial delays in availability in China, the iPhone Air quickly sold out within minutes of its release, indicating strong consumer interest. Analysts at Evercore ISI have noted that current lead times for the iPhone 17 are outpacing those from the previous year, suggesting that this may indicate a demand surge beyond the typical iPhone refresh cycle.
Moreover, the sentiment among Wall Street analysts regarding Apple has begun to improve, with several upgrades to the company's stock forecast. Over the past month, Apple has outperformed other major tech firms, achieving a gain of over 5%, surpassing Amazon’s 3% and approaching Nvidia’s 7% increase. In contrast, Meta’s shares have returned just 1.5% in the same timeframe.
As Apple prepares to report its earnings on Thursday, Wall Street analysts are optimistic about the company's financial outlook. Current projections suggest that Apple could report more than $100 billion in quarterly revenue, further solidifying its status as a leading player in the technology sector.
In summary, Apple’s recent market performance and strategic developments reflect a dynamic landscape for the tech giant. With favorable legal rulings, strong product launches, and an improving analyst outlook, Apple is poised to navigate the competitive market effectively and potentially reclaim its position above the $4 trillion valuation in the near future.
