Apple briefly crossed the $5 trillion market-value threshold Tuesday, setting a record share price of $342.89 and reaching a valuation of about $5.036 trillion before giving back some of its gains later in the session.
The milestone came only months after Apple first surpassed $4 trillion in October 2025 and one day after it reclaimed the title of the world’s most valuable publicly traded company from Nvidia.
Apple shares have risen about 24% since the beginning of the year and roughly 58% over the past 12 months, significantly outperforming several other major technology stocks.
The rally has been supported by resilient demand for Apple hardware, led by the iPhone 17 lineup, and record momentum in its services business, which generated $31 billion in the latest quarter.
But what has particularly attracted investors is Apple’s relatively restrained approach to artificial intelligence spending.
While rivals have committed enormous sums to building data centers and training large AI models internally, Apple has chosen to rely in part on Google technology to support new services, including a redesigned version of Siri.
That strategy has appealed to investors concerned that the technology industry’s escalating capital expenditure could place increasing pressure on cash flow and profitability.
Investors await iPhone 18 and upgraded Siri
Apple introduced its Apple Intelligence platform in 2024, but several of its most important features, particularly the revamped Siri, have been delayed.
A beta version of the upgraded assistant is expected to arrive in the fall alongside the iPhone 18 lineup, with a wider rollout planned later in the year.
Apple headquarters
(Photo: Shutterstock)
Early assessments of the redesigned system have been broadly positive.
Apple’s rally has come during an especially turbulent period for AI-related stocks. A global sector selloff recently pushed the Nasdaq 100 into correction territory and severely affected US semiconductor companies.
As investors shifted money away from high-flying AI shares, some of that capital moved into Apple, creating a sharp divergence in performance across the technology sector.
The downturn also spread to Asia. South Korea’s stock market fell to its lowest level since mid-April, while shares of SK Hynix and Samsung Electronics each dropped by more than 10%.
Nvidia, which had led the market since June 2025 and previously crossed the $5 trillion threshold, lost about $1 trillion in market value during the sector turmoil, allowing Apple to regain the top position.
Higher prices, but strong margins
Apple has also faced pressure from shortages of memory and storage chips, driven partly by surging AI demand.
The company raised prices last month on certain MacBook and iPad models to offset higher component costs and warned that future iPhone generations could also be affected.
iPhone 17 Pro
(Photo: Apple)
Despite those pressures, Apple’s board approved a new $100 billion share-repurchase program and increased the dividend by 4%.
Its gross margin in the latest quarter reached 49.3%, while the company forecast a range of 47.5% to 48.5% for the current quarter.
Those figures have reinforced investor perceptions that Apple is maintaining tighter capital discipline than many of its competitors.
Google offers a striking contrast. The company raised its planned 2026 capital expenditure to $205 billion to fund AI initiatives after reporting negative free cash flow of $5.9 billion in the June quarter alone.
Expanding hardware and services
Apple is also preparing to broaden its hardware offerings in the fall.
The company has already launched a US device-rental program called Upgrade in partnership with Klarna Group. Monthly payments begin at $17.99 for an iPhone, $11.99 for an Apple Watch or iPad and $24.99 for a Mac.
At the same time, Apple is planning its most significant expansion yet into the smart-home category.
Expected products include an AI-powered home hub with a square display of about seven inches, an updated Apple TV and a new HomePod mini.
The company is also preparing for a major leadership transition.
CEO Tim Cook is expected to hand the role to John Ternus on September 1, placing a veteran hardware executive at the company’s helm as Apple seeks to balance gradual device upgrades, services growth and the adoption of AI features developed largely through outside partnerships rather than costly internal infrastructure.