On Tuesday, Apple briefly achieved a market capitalization of $5 trillion, overtaking Nvidia as the most valuable publicly traded company. This milestone comes as Apple's shares have surged 25% this year, significantly outperforming other major tech firms. The stock peaked at $342.89 before experiencing a slight decline.
While other tech giants such as Alphabet, Amazon, Meta, and Microsoft are heavily investing in artificial intelligence, Apple has opted for a more conservative approach, utilizing cloud and AI services from Google and maintaining lower capital expenditures.
Last year, Apple faced criticism for not investing enough in AI, especially with the delayed launch of an upgraded Siri, expected this fall alongside new iPhone models. However, the narrative has shifted as concerns grow about the financial sustainability of aggressive tech spending, which has led to increased debt and negative cash flow for some competitors.
Nvidia, which previously reached the $5 trillion mark, has seen only a 6% increase in its stock this year, contrasting with Apple's robust performance despite rising device prices due to a global memory shortage. Additionally, Apple announced a new leasing program called Upgrade, allowing U.S. customers to lease products instead of purchasing them outright.
This follows a recent price increase on MacBooks and iPads, marking Apple's first significant move to pass on higher costs to consumers. Notably, Thursday's earnings call will be CEO Tim Cook's last before John Ternus takes over on September 1