Apple has reclaimed its position as the world’s most valuable company, surpassing Microsoft with a market valuation of $3.3 trillion.
This milestone comes as Apple added $300 billion to its market capitalization over the past two days, driven by advancements in artificial intelligence technology and recent product announcements at WWDC, taking place this week.
This fall, Apple Intelligence will debut on the newest devices such as iPhone 15 Pro series phones or newer, and M1 devices or newer.
“Apple has added another $150 billion to their market cap today,” analyst Gene Munster said on Wednesday. “That means over the past eight hours of trading, Apple has added $350 billion in value.”
Munster provided insight into investors’ expectations, stating that they likely anticipate the company to earn around $9 in EPS by 2026, compared to the Street’s current estimate of $7.90. He added that if the market is entering a 3-5 year AI bull market, it is reasonable to expect multiple expansions, with investors focusing on a 35x earnings multiple next year. Currently, Apple trades at 29x next year’s earnings.
“In a year, the market will be pricing in expectations for 2026,” said Munster. “With $9 EPS x 35, it implies about a $4.7 trillion market cap, which is hard to fathom. Back in 2018, when Apple crossed the $1 trillion mark, most thought $2 trillion was impossible.”
The surge in market capitalization has solidified Apple’s lead over both Microsoft and NVIDIA, both major players in the AI race at the moment. Companies can’t stop buying GPU chips from NVIDIA (they’re literally printing money thanks to the insane demand) to power their AI servers and Microsoft is backing OpenAI and the latter’s ChatGPT.
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