APPLE Inc has achieved a historic milestone, becoming the world’s first company to reach a staggering market value of $3 trillion.
The tech giant’s exceptional performance is attributed to its optimistic expansion in new markets and investors’ expectations of a more restrained approach to interest rate hikes by the Federal Reserve (the US central bank).
Throughout the past month, investors have shown increased interest in companies exploring the potential of artificial intelligence, leading to a surge in Apple’s shares. Investors are particularly drawn to companies boasting robust balance sheets and steady cash flows.
Apple’s recent quarterly report in May showcased impressive revenue and profit figures that surpassed analysts’ expectations.
This, combined with the company’s reputation for stock buybacks, solidified its status as a secure investment option amid global economic uncertainties.
In a similar vein, electric car manufacturer Tesla Inc experienced a remarkable 28 percent surge in market capitalization during June.
The boost came as a result of strategic deals struck by competitors Ford Motor Co and General Motors Co to access Tesla’s charging network, potentially establishing Tesla’s chargers as the industry standard.
Joining the trillion-dollar club last month was Nvidia Corp, whose market cap rose by 11.8 percent. Investors are betting on Nvidia’s potential to reap significant benefits from the booming artificial intelligence industry.
The company’s shares skyrocketed after a revenue forecast that surpassed Wall Street estimates by more than 50 percent in May.
As of the end of June, Apple and Microsoft Corp claimed the top two positions among the world’s top 20 companies by market capitalization.
In contrast, Alphabet Inc (Google’s parent company) experienced a 2.3 percent drop in market cap during the same period, amounting to $1.53 trillion.
The decline was attributed to increased competitive pressure from Microsoft’s Bing search engine, which gained prominence after integrating the artificial intelligence technology behind ChatGPT.
Apple’s record-breaking achievement marks a significant moment in corporate history, setting a new standard for market value in the business world.