Apple's market cap hit a fleeting $5 trillion on Tuesday, July 28, making it just the second company after Nvidia to attain such a milestone. Shares touched an intraday peak of $342.89 before pulling back.
The surge comes two days before Apple unveils its third-quarter earnings on Thursday, which will also mark Tim Cook's last earnings call as CEO. John Ternus is set to take over as chief executive starting September 1.
Growth Driven by Strong iPhone Sales, Not AI
Apple's stock has risen around 25% this year, outperforming Nvidia’s 6% gain despite lagging behind in the AI race. According to analysts, Apple’s cautious spending on AI infrastructure contrasts sharply with its competitors’ heavy investments. Rather than developing its own large language model, Apple relies on Google’s cloud services to power a revamped Siri, expected to launch this fall alongside new iPhone models.
Instead of AI, Apple’s ascent to the $5 trillion mark has been propelled mainly by solid iPhone demand. The company also introduced a new leasing program called Upgrade in partnership with Klarna, allowing US customers to pay $17.99 monthly for an iPhone instead of a lump sum. This follows recent price hikes on MacBooks and iPads due to increased memory and storage costs.
The upcoming earnings report will reveal if Apple’s traditional product strength can sustain its valuation, now rivaling Nvidia’s. Meanwhile, the company’s strategic restraint on AI spending keeps it distinct from other tech giants.
This content is for informational purposes and does not constitute financial advice.
