Apple briefly touches $5T value, second ever after Nvidia
What's the deal? Apple's market capitalisation briefly topped $5 trillion for the first time on Tuesday, making it only the second company ever to hit that mark after Nvidia. At a session high of $342.89, its value reached $5.036 trillion, before settling at $4.96 trillion with shares up 0.2% at $337.70.
Why now? The iPhone maker became the world's most valuable company earlier this month, overtaking Nvidia — the top-ranked stock since June 2025 and the first to breach $5 trillion. Apple stock has climbed 24% this year, outpacing the rest of the "Magnificent 7" US tech cohort.
What's the endgame? This year's rally has been driven by strong product demand and Apple's decision to sit out the AI spending race sapping cash flows at Big Tech rivals. After struggling to build in-house AI models, it now leans on Google's technology to power services like a revamped Siri, avoiding the heavy infrastructure costs that have made investors wary.
The product angle: Apple held iPhone prices steady last month while raising them for MacBooks and iPads, prompting buyers to scoop up the flagship device ahead of expected hikes. On Tuesday it also launched a US device leasing program through payments firm Klarna, with monthly payments starting at $17.99 for an iPhone, $11.99 for an Apple Watch or iPad, and $24.99 for a Mac.
"Apple has resisted the AI spending race, betting that customer experience — not infrastructure investment — will ultimately determine the winners," said Dipanjan Chatterjee, vice president and principal analyst at ForresterDealroom has a profile for this one. Try Dealroom →. He called the leasing plan "a clever response" that swaps "sticker shock with a predictable monthly payment."
What's next? Apple reports third-quarter earnings after market close on Thursday, with analysts expecting quarterly revenue to jump more than 15% from a year earlier.
The signal: Apple's ascent shows a market rewarding restraint on AI infrastructure spending, at least for now. While rivals pour cash into data centres with uncertain payoffs, Apple is betting that pricing tactics and consumer demand can carry it — a wager investors are backing to the tune of nearly $5 trillion.
Read more: The Economic Times
