FX.co ★ Apple Inc. reaping rewards of AI boom

Investors are watching the competition among global corporations with bated breath. Apple and Microsoft have joined this captivating battle. Let's see who won! Bloomberg acknowledged that the leader is the IT giant Apple.

Following the worldwide developers conference, Apple Inc. announced its plans for solutions related to artificial intelligence (AI). This boosted market hopes for upgrades to their new iPhone models and expanded the company’s market capitalization to $3.285 trillion. Riding this wave of success, Apple overtook Microsoft and regained its status as the most valuable company in the world.

Currently, Microsoft’s market value stands at $3.282 trillion. Previously, Apple ranked third in market capitalization, behind NVIDIA Corporation.

Apple’s shares surged sharply in this context. The rise in stock of the iPhone manufacturer was driven by investor optimism and confidence that they would benefit from AI. Many analysts share this view, believing that in the near future, Microsoft, Apple, and Nvidia will show "leapfrogging" growth.

Experts estimated that Apple’s three-day stock jump of 11% pumped up its market capitalization. As a result, Apple’s performance surpassed almost all components of the S&P 500 index.

However, there is a downside: in the second quarter of the current fiscal year, Apple’s revenue decreased by 4.3%. This marked the fifth decline in the past six quarters. Nevertheless, the market and high-tech giant pins their hopes on the latest AI achievements. Analysts believe that the introduction of the AI-based Apple Intelligence system will create opportunities for a multi-year upgrade cycle through the faster replacement of outdated iPhone models.