Overview
- Apple’s shares spiked to a session high of $342.89 on Tuesday, pushing its market value above $5 trillion during intraday trading before the stock slipped below the level needed to close above that mark.
- The rally has been driven by robust iPhone demand and accelerating Services revenue, and the company announced a U.S. device leasing program with Klarna on July 28 to broaden purchase options.
- Market moves reflect an investor rotation away from firms spending heavily on AI infrastructure toward companies like Apple that rely on partners such as Google for AI models and keep capital expenditures relatively low.
- Near-term risks that will test whether the valuation holds include Apple’s fiscal third-quarter earnings report on July 30, pressure from a global memory shortage that has raised Mac and iPad prices, and the scheduled CEO transition to John Ternus on Sept. 1.
- The $5 trillion intraday milestone is largely symbolic because market capitalization equals share price times shares outstanding and Apple’s ongoing buyback program reduces the share count and the price needed to reach valuation thresholds.