Apple has become only the second company ever to pass a $5tn valuation, lifted by investors leaving AI and semiconductor stocks. Its shares hit a session high of $342.89 on Tuesday before easing back below the mark. The iPhone maker reports third-quarter earnings after the close on Thursday.
Apple passed the $5tn valuation mark on Tuesday, becoming only the second company to do so, as it benefited from investors fleeing AI and semiconductor stocks amid a wider tech sell-off.
The iPhone maker's shares hit a session high of $342.89, giving it a market capitalisation of $5.04tn, then eased back down to $340.08 — around the $5tn mark. The shares pared early gains to close 0.9% higher on the day, leaving Apple just below the threshold.
Chip stocks and the Nasdaq 100 extend losses
US chip stocks extended their recent losses when Wall Street opened on Tuesday, with Intel, Advanced Micro Devices, Sandisk, Western Digital and Seagate Technology all down by more than 4%. The Nasdaq 100 index fell by as much as 1.8% at one point, meaning it had dropped more than 10% since its early June record high — the technical definition of a market correction.
Nvidia, which had been at the top since June 2025, became the first company to breach the $5tn threshold last October. It has since fallen from its May peak, leaving it up almost 6% for the year.
Analysts attributed the sell-off to renewed worries over AI investment spending, and competition from cheaper Chinese companies, after a report by the Information that China had begun mass production of homegrown deep ultraviolet chip-making tools. South Korea's stock market meanwhile slid to its lowest level since mid-April, with SK Hynix and Samsung Electronics falling by more than 10%.
Investors have also been spooked by Google's announcement last week that it was further increasing capital spending this year to as much as $205bn, while reporting negative free cashflow for the first time in its history.
Sitting out the AI spending race
Apple's rally has been driven as much by strong demand for its products as by its decision to sit out the AI spending race that is sapping cash flows at big tech rivals. Its difficulties in developing in-house models meant it has instead relied on Google's technology to power new services such as a revamped Siri.
Dipanjan Chatterjee, a vice-president and principal analyst at Forrester, said Apple is "betting that customer experience – not infrastructure investment – will ultimately determine the winners".
Holding iPhone prices steady last month, when it announced increases for MacBooks and iPads, has also bolstered demand as buyers scooped up the flagship device before expected price hikes later this year, analysts have said. On Tuesday the company also launched a US device leasing programme through the payments firm Klarna, with monthly payments starting at $17.99 for an iPhone.
Including session gains, Apple stock has jumped 24% so far this year, outperforming the other six of the "Magnificent Seven" cohort of US technology stocks. Apple is to report its third-quarter earnings after the market close on Thursday, with analysts expecting a more than 15% jump in revenue for the period compared with a year earlier.
Sources: The Guardian, Financial Times
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