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Apple Nears $4 Trillion Valuation As AI Boosts Investor Confidence

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Courtesy of Apple.
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Apple is on the verge of reaching a historic $4 trillion market valuation, as investors are optimistic over the company’s AI advancements aimed at reviving lagging iPhone sales. As a result, Apple’s stock surged to a new record of $255.65 per share on Monday (December 23), before closing the day at $255.27.

The tech giant surpassed its competitors Nvidia and Microsoft in the race to this landmark achievement, driven by a 16% increase in shares since early November.

On Monday, Apple’s market capitalization stood at $3.85 trillion at the close of trading, while its rivals Nvidia and Microsoft held market caps of $3.42 trillion and $3.23 trillion, respectively.

Investor Enthusiasm For Artificial Intelligence

Earlier in December, Apple began integrating OpenAI’s ChatGPT into its devices, following a June announcement about plans to incorporate generative AI technology across its app suite.

Apple also launched four iPhone 16 models, featuring chips designed to support AI capabilities. The company introduced its new AI features, branded as Apple Intelligence, for iPhone 15 Pro and iPhone 16 users in October. CEO Tim Cook told analysts during an October call that this marked the beginning of a new chapter for the company.

“This is just the beginning of what we believe generative AI can do and I couldn’t be more excited for what’s to come,” Cook said at the time.

Now, Tom Forte, an analyst at Maxim Group, said that Apple shares reflect “investor enthusiasm for artificial intelligence and an expectation that it will result in a supercycle of iPhone upgrades.”

Apple’s 2025 Fiscal Year Projection

Apple is projected to sell over 240 million iPhones in the 2025 fiscal year, driven by AI-powered enhancements. Researchers believe this could mark “the highest iPhone unit sales year in Apple’s history.”

In a recent note, analysts at Wedbush, including Dan Ives, said that the Cupertino, California-based company “is set to have a strong holiday season ahead as iPhone 16 upgrades across its installed base are trending well into Christmas.”

Apple’s AI Push Faces Analyst Skepticism

While Apple has been banking on its new AI features, Apple Intelligence, to boost sales, some analysts warn that more substantial innovations will be necessary to sustain interest.

Wedbush argues that critics are overlooking key opportunities, noting that with 2 billion iOS devices and 1.5 billion iPhones in use worldwide, approximately 300 million iPhones have not been upgraded in the past four years.