According to Refinitiv data, the stock of the iPhone maker rose by 0.6% to close the day at $189.25, resulting in Apple's market value reaching $2.98 trillion. This marks the second consecutive record high close for Apple's shares.
Although Apple briefly surpassed the $3 trillion mark during intra-day trading on January 3, 2022, it has yet to conclude a trading session with a stock market value above this threshold.
The recent surge in the shares of the world's most valuable company can be attributed to the strong recovery of several technology-related giants on Wall Street. These gains have been fueled by the belief that the Federal Reserve is nearing the conclusion of its U.S. interest rate hike campaign and optimism surrounding the potential of artificial intelligence. However, Thomas Martin, Senior Portfolio Manager at Globalt Investments, noted that there haven't been any new fundamental factors driving the stock's movement. "What you're left with is, you know, the market itself," he added.
In 2023, Apple's stock experienced a remarkable 46% jump, while Nvidia (NVDA.O) surged by 185%, becoming the first chipmaker to surpass a $1 trillion market value. Additionally, Tesla (TSLA.O) and Meta Platforms (META.O) have more than doubled in value this year, and Microsoft (MSFT.O) has seen a 40% increase.
Apple's approach to reaching the $3 trillion milestone involved the launch of an expensive augmented-reality headset on June 5. This move marked the company's riskiest venture since the introduction of the iPhone over a decade ago.
Despite Apple's most recent quarterly report in May indicating a decline in revenue and profits, the company still exceeded analysts' expectations. Coupled with its consistent record of stock buybacks, these financial results reinforced Apple's reputation as a secure investment during a time of global economic uncertainty.
The recent surge in Apple's shares has outpaced analysts' predictions for the company's future earnings. Currently, the stock is trading at approximately 29 times expected earnings, marking its highest multiple since February 2022, as per Refinitiv data.