Apple has officially joined the exclusive $5 trillion club, becoming the second company ever to achieve such a market valuation. This milestone was aided by a wave of investors moving away from artificial intelligence and semiconductor stocks amid a broader technology sell-off.
On Tuesday, Apple's share price peaked at $342.89, lifting its market capitalization to $5.04 trillion (£3.78 trillion), before settling slightly lower at $339.68—a valuation hovering around $4.99 trillion. Earlier this month, Apple reclaimed its status as the world's most valuable company, surpassing Nvidia, which has held the top spot since June 2025. Nvidia was also the first to surpass the $5 trillion mark last October.
The surge in Apple's valuation is attributed not only to robust demand for its product lineup but also to the company’s decision to refrain from participating in the intense competition over AI investments that has strained the cash flows of its larger tech rivals.
Apple's new valuation comes as concerns grow about the financial health of AI companies, particularly regarding their borrowing to fund datacenter expansions. This unease has contributed to a more pronounced sell-off in AI-related stocks globally. In the U.S., major semiconductor stocks experienced declines when the market opened on Tuesday, with figures for Intel, AMD, Sandisk, Western Digital, and Seagate Technology all dropping over 4%.
The Nasdaq 100 index, which tracks leading tech stocks, fell by as much as 1.8%, marking a decline of more than 10% since reaching a record high in early June, a condition identified as a market correction. Additionally, the South Korean stock market faced its lowest point since mid-April, with major semiconductor firms like SK Hynix and Samsung also experiencing significant losses exceeding 10%.
Analysts suggest the downturn is linked to renewed anxiety over AI investment spending and competition from more affordable Chinese manufacturers, especially after reports indicated that China has initiated mass production of domestically produced deep ultraviolet (DUV) chip-making equipment.
Apple's strategy to maintain stable pricing for the iPhone, amidst raises for MacBooks and iPads, has encouraged customer purchases. On Tuesday, the company also launched a leasing program in the U.S. through the payment service Klarna. The plan offers monthly payments starting at $17.99 for an iPhone, $11.99 for an Apple Watch or iPad, and $24.99 for a Mac.
"By steering clear of the AI spending frenzy, Apple focuses on enhancing customer experience over vast infrastructure investments,” commented Dipanjan Chatterjee, a vice president and principal analyst at Forrester. “The new leasing initiative cleverly shifts consumer perception by replacing the impactful initial cost with manageable monthly payments.”
Since the start of the year, Apple's stock has soared by 24%, significantly outperforming the other members of the renowned "Magnificent Seven" group of U.S. technology stocks. Looking ahead, Apple is set to announce its third-quarter earnings after the market closes on Thursday, with analysts anticipating a revenue increase exceeding 15% compared to the same period last year.
