Apple’s stock price rose by over 2% on Friday, reaching a record high of $193.97. With 15.7 billion shares outstanding, this significant increase has solidified Apple’s position as a tech giant with an unprecedented market value.
This isn’t the first time Apple has approached the $3 trillion mark. On January 3, 2022, the company briefly touched the milestone during intraday trading but failed to close at that level.
However, this time, Apple managed to comfortably surpass the required mark, having closed at a record high share price for three consecutive days leading up to the breakthrough.
Factors that contributed to the growth
The surge in Apple’s stock can be attributed to two key factors:
- The recent launch of the Apple Vision Pro has garnered considerable attention. Although the augmented reality device has impressed tech journalists during early previews, it faces the challenge of entering a nascent market with limited mainstream consumer adoption. Priced at $3,499, the headset is accompanied by a limited range of apps and experiences, and users must remain tethered to a battery pack the size of an iPhone;
- Apple’s stronger-than-expected quarterly earnings report in May has significantly contributed to its remarkable market performance. Despite experiencing a slump in sales and profit, the tech giant managed to exceed expectations, bolstering investor confidence in the company’s future prospects.
The trend of AI making big tech superior
Apple’s stock surge is part of a broader trend within the Big Tech sector, where investors have flocked to companies involved in artificial intelligence (AI).
This trend is evident in the substantial gains of other tech giants such as Nvidia and Meta. Nvidia currently leads the S&P 500 with an astounding 190% increase this year, closely followed by Meta at 138%.
The Nasdaq, which heavily relies on tech stocks, experienced an impressive growth of 31.7% in the first half of the year, marking its largest first-half percentage gain since 1983. This remarkable performance showcases the resilience and appeal of the tech sector, particularly in an increasingly digitized world.
Apple’s 2023 revival
Apple’s success in the stock market this year stands in stark contrast to its performance in 2022. At the beginning of 2023, Apple’s market cap fell below $2 trillion for the first time since early 2021, reflecting the inherent volatility and cyclical nature of the stock market.
Overall, the first half of 2023 concluded on a positive note for Wall Street, driven by the tech rally. The S&P 500 recorded its best monthly performance since January with a gain of 6.5% in June.
Additionally, it achieved its third consecutive quarter of growth, experiencing an 8.3% increase in the second quarter. Year-to-date, the S&P 500 has climbed approximately 15.9%, marking its strongest first half since 2019.
With Apple’s unprecedented market valuation and the continued upward trajectory of the tech sector, investors will closely monitor the industry’s growth and its implications for the broader financial landscape.