Apple briefly became the second company to achieve a $5tn valuation on Tuesday, benefiting from a shift in investor focus away from AI and semiconductor stocks. The iPhone maker's shares hit a session high of $342.89, resulting in a market capitalisation of $5.04tn (£3.78tn), before settling slightly lower at $339.71.
This surge for Apple comes amid a broader tech sell-off, with investors reportedly moving away from AI and semiconductor companies. Analysts suggest Apple's rally is driven by robust demand for its products and its strategy to not engage in the significant AI spending race that is impacting the cash flows of other major tech rivals.
The wider tech market experienced declines, with US chip stocks such as Intel and Advanced Micro Devices falling by more than 4%. The Nasdaq 100 index also dropped by over 10% from its early June high, indicating a market correction. Concerns over AI companies' borrowing for data centre expansion and competition from Chinese chip manufacturers are cited as factors in the sell-off.
Apple's stock has risen by 24% this year, outperforming other leading US technology companies. The company also launched a device leasing programme in the US on Tuesday, offering monthly payments for iPhones, Apple Watches, iPads, and Macs.