Shares of the iPhone maker rose 0.6% to close at $189.25, giving the company a market capitalization of more than $2.98 trillion, according to Refinitiv data.
Previously, on January 3, 2022, the tech giant also surpassed the $3 trillion market capitalization mark before falling after the trading session ended.
The latest surge in the world 's most valuable company's stock price follows a strong rally in Wall Street's tech-heavy names, combined with optimism about the potential of artificial intelligence, as well as expectations that the US Federal Reserve is nearing the end of its interest-rate hikes.
“There’s no new information to support the stock’s move. It’s just the way the market is moving,” said Thomas Martin, senior portfolio manager at Globalt Investments.
In 2023, Apple shares rose 46%, while Nvidia surged 185% to become the first chipmaker to reach a market capitalization of more than $1 trillion. Tesla and Meta Platforms (Facebook’s parent company) also doubled in the year, while Microsoft’s market value increased by 40%.
Apple is closing in on a $3 trillion valuation after it unveiled an expensive augmented reality headset earlier this month, its riskiest bet since the iPhone more than a decade ago.
The company’s latest quarterly report showed that both revenue and profit fell, but still beat analysts’ expectations. Along with that, the company’s steady stock buybacks make it a safe investment in an uncertain global economy .
Apple’s recent surge has far exceeded analysts’ estimates for the company’s future earnings. The tech giant’s shares are trading at about 29 times expected revenue, the highest multiple since February 2022, according to Refinitiv.
(According to Reuters)
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