Apple hits $4 trillion market cap, joins Nvidia and Microsoft to reach milestone

Tech giant Apple Inc.'s market capitalisation reached a historic $4 trillion on 28 October, making it only the third public company, after Nvidia and Microsoft, to reach the milestone. According to a Reuters report, the stock was last up 0.2% at $269.2 in early trading, hitting an all-time high.

This jump in share price comes amid strong demand for Apple's iPhone 17 series, which outsold its predecessor, the iPhone 16 series, by 14% in its first 10 days on sale in China and the United States, the Bloomberg report said, citing data from Counterpoint Research.

Besides its iPhone 17 series devices, Apple also launched new versions of the iPad Pro, Vision Pro and entry-level MacBook Pro with its new M5 chip — all crucial retail boost ahead of the coming holiday season, the report said.

How did the stock rise to $4 trillion value?

Since April, the iPhone maker's shares have rocketed by more than 56%, adding around $1.4 trillion in market value, amid enthusiasm for its newest range of smartphones, it added.

The Reuters report noted that the company's shares have risen some 13% since the new launches in September. It further said that LSEG data shows Apple's share trading at 33.2 times its projected earnings for the next 12 months, higher than the 27.42 for the Nasdaq 100.

Analysts told Bloomberg that while Apple has lagged in the artificial intelligence (AI) race, the consumer side has paid off for the company. Dan Ives, analyst at Wedbush Securities, told Bloomberg, “Despite missing out on AI so far, Apple hitting the $4 trillion market cap club is a watershed moment for Cupertino and Big Tech. This is a testament to the best consumer franchise in the world.”

Speaking to Reuters, Chris Zaccarelli, chief investment officer for Northlight Asset Management, concurred, “The iPhone accounts for over half of Apple's profit and revenue, and the more phones they can get into the hands of people, the more they can drive people into their ecosystem.”

In a note last week, Loop analyst Ananda Baruah upgraded his view on the Apple stock to buy from hold, noting, “We are now at the front end of Apple’s long-anticipated adoption cycle.”

Apple third listed company in history to reach $4 trillion milestone

Notably, Apple joins the $4 trillion market cap club, which includes only two other names — Nvidia and Microsoft (also Big Tech). The milestone comes only months after Nvidia, in July, became the first company to achieve the numbers, followed by Microsoft, which also hit the mark today (28 October) amid a deal announcement with OpenAI.

The report said analysts are “divided” on Apple, despite it being among the three largest companies in the world. Among Magnificent Seven companies, Apple has the lowest ratio of analyst buy recommendations outside of Tesla Inc., according to data compiled by Bloomberg. Meanwhile, its average 12-month price target is more than 6% below where the stock currently trades, it added.

(With inputs from Bloomberg and Reuters)