Key Takeaways
- Apple hit a major milestone on Tuesday, reaching a feat only achieved by Nvidia and Microsoft.
- The stock rally was fueled by early iPhone 17 sales, which were stronger than iPhone 16 sales, according to new research.
- Apple stock has increased by approximately 10% year-to-date, a smaller gain than Nvidia’s 40% and Microsoft’s 29%.
In early July, Nvidia became the first ever company to hit $4 trillion in market value, with Microsoft following later in the month. Now another tech giant has joined the exclusive $4 trillion club.
Apple reached a $4 trillion market capitalization for the first time on Tuesday, with the company’s stock price reaching new highs of around $270 in early trading, elevating its market cap to a little over $4 trillion.
The stock rally has been driven by strong sales of the new iPhone 17, which Apple introduced last month. According to a Counterpoint Research report last week, sales of the iPhone 17 series surpassed those of the iPhone 16 by 14% during the first 10 days after launch in both the U.S. and China. In other words, initial iPhone 17 sales have significantly outperformed iPhone 16 sales in Apple’s two biggest markets.
Related: Here’s Why Apple Stock Just Hit an All-Time High, Setting a New Record
The Counterpoint report also indicated that the iPhone 17 Pro Max has been selling well in the U.S. as phone carriers like T-Mobile, Verizon and AT&T offer deals to make the premium device more affordable to customers.
Meanwhile, the iPhone 17 has been selling well in China, with unit sales nearly double that of iPhone 16 sales at the same time in 2024.
In past remarks, Apple CEO Tim Cook has consistently emphasized the strength of the iPhone. For example, at an Apple town hall meeting in 2016, Cook said that the iPhone is the “greatest business of the future” and that he expects iPhone sales to continue to grow for decades.
Apple’s stock has increased by approximately 10% year-to-date, a smaller gain compared to Nvidia’s 40% and Microsoft’s 29%. Investors are somewhat cautious about Apple’s position in the AI race, according to Business Insider, while Nvidia, a major supplier of AI chips, and Microsoft, a leading AI investor, have seen more significant stock gains.
“Despite missing out on AI so far, Apple hitting the $4 trillion market cap club is a watershed moment for Cupertino and Big Tech,” Dan Ives, Wedbush Securities analyst, told Bloomberg. “This is a testament to the best consumer franchise in the world.”
Related: Apple’s Foldable iPhone Release Date Has Been Revealed, According to a JPMorgan Investor Letter
For its fiscal third quarter, Apple generated revenue of $94.04 billion, a 10% year-over-year increase. The tech giant saw double-digit growth in its iPhone, Mac and Services segments, as well as growth in every geographic region it operates in.
Apple is expected to report its fourth-quarter earnings on Thursday after market close for the period ending September 30.
Key Takeaways
- Apple hit a major milestone on Tuesday, reaching a feat only achieved by Nvidia and Microsoft.
- The stock rally was fueled by early iPhone 17 sales, which were stronger than iPhone 16 sales, according to new research.
- Apple stock has increased by approximately 10% year-to-date, a smaller gain than Nvidia’s 40% and Microsoft’s 29%.
In early July, Nvidia became the first ever company to hit $4 trillion in market value, with Microsoft following later in the month. Now another tech giant has joined the exclusive $4 trillion club.
Apple reached a $4 trillion market capitalization for the first time on Tuesday, with the company’s stock price reaching new highs of around $270 in early trading, elevating its market cap to a little over $4 trillion.
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