Apple stock has reached a new record high, propelling the company back to the top spot as the world's most valuable company, overtaking Nvidia, whose shares have continued to decline amid recent AI stock sell-offs.
As of 30 July, Apple, a major global producer of electronics including smartphones, computers, and software, has a market capitalization of $4.967 trillion, reclaiming the number one position after its shares hit an all-time high. This year, Apple's stock has gained over 25%, while the other seven tech giants remain deeply negative or have only seen modest increases.
The main reason is that investors perceive Apple as less affected by the AI arms race. While competitors are committing hundreds of billions of dollars to AI investments, Apple has chosen not to follow this path. Moreover, Apple does not rely directly on semiconductor supply chains like chip manufacturers do, enabling it to avoid the pressures currently facing many major tech firms.
Apple continues to keep its capital expenditure (CapEx) low, leveraging cloud infrastructure and AI technologies from partners such as Google instead of making massive in-house investments.
Since last year and up to this year's Worldwide Developers Conference (WWDC), Apple has been viewed as a follower in AI trends, investing cautiously and delaying the launch of a new AI-powered Siri version, scheduled for release alongside new iPhones in September.
Historically, Apple's stock often fell after any announcements, whether for new features at annual events or critical price hikes resulting from global memory chip cost increases.
However, recently investor sentiment has shifted due to concerns about major tech companies heavily investing in AI, which may increase debt burdens and result in negative cash flows without clear returns on these massive investments.
Apple's stock price has steadily climbed to new highs as investors await the earnings announcement on Thursday night (U.S. time). Other big tech firms, like Meta and Microsoft, have already reported earnings—despite exceeding revenue expectations and profitability, their stocks have declined due to ongoing increases in CapEx. Similarly, Alphabet, Google's parent company, recently experienced negative cash flow for the first time due to large AI investments.
This earnings announcement will also mark the final analyst meeting with Tim Cook as Apple's CEO before John Ternus officially takes over as CEO on 1 September this year.
Source: CNBC [1][2],Companies Market Cap
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