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Apple Approaches $4 Trillion Valuation As Investors Bet On AI Momentum

Apple Inc. is on the brink of an unprecedented $4 trillion market valuation, fueled by investor confidence in its expanding artificial intelligence (AI) initiatives. The tech giant’s stock has surged 16% since November, adding roughly $500 billion to its capitalization and surpassing peers like Nvidia and Microsoft in the race to this historic milestone.

As of the latest close, Apple is valued at approximately $3.85 trillion, eclipsing the combined worth of Germany and Switzerland’s main stock markets. This remarkable growth reflects investor anticipation of AI-powered advancements triggering an “iPhone supercycle,” according to Tom Forte, an analyst at Maxim Group.

Apple’s journey to AI dominance has lagged behind competitors like Microsoft, Alphabet, and Meta Platforms. However, the company recently integrated OpenAI’s ChatGPT into its devices and announced plans to incorporate generative AI across its app ecosystem. These moves aim to rejuvenate iPhone sales, which analysts expect to rebound by 2025.

Despite modest revenue growth forecasts for the current holiday season, Apple remains Wall Street’s top pick for 2025. Morgan Stanley’s Erik Woodring attributes muted near-term iPhone demand to limited AI features and geographic availability, predicting that enhancements in these areas will drive future growth.

Apple’s rally has propelled its price-to-earnings ratio to a near three-year high of 33.5, compared to Microsoft’s 31.3 and Nvidia’s 31.7. While Berkshire Hathaway has reduced its Apple holdings this year, citing valuation concerns, some analysts believe the stock’s long-term potential remains strong.

External challenges loom, including potential tariffs under the incoming U.S. administration. However, Apple’s history of securing exclusions during trade disputes offers some reassurance.

As AI continues to reshape the tech landscape, Apple’s approach to the $4 trillion mark underscores its resilience and innovation. “This milestone reinforces Apple’s position as a market leader,” remarked Adam Sarhan, CEO of 50 Park Investments.

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