Apple share price at record high, market value inches closer to $3 trillion

By India Today Business DeskApple’s stock reached an all-time high on Wednesday, bringing the tech giant within striking distance of a remarkable $3 trillion market capitalisation.

Closing at $189.25 per share, the 0.6 per cent increase contributed to Apple’s market value of $2.98 trillion, as per Refinitiv data quoted in a Reuters report. This marked the second consecutive record-high close for the company’s shares.

Although Apple has yet to conclude a trading session with a market value surpassing $3 trillion, it briefly surpassed that milestone in intra-day trading on January 3, 2022, only to fall just short at the closing bell.

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What’s driving the rally?

The recent surge in Apple’s stock is part of a broader trend that has seen several technology heavyweights rebound strongly this year.

Investors have placed bets on the Federal Reserve nearing the conclusion of its U.S. interest rate hikes and are optimistic about the potential of artificial intelligence.

Thomas Martin, Senior Portfolio Manager at Globalt Investments, told Reuters that there hasn’t been any significant new information driving this stock movement. Instead, he suggests that it reflects overall market dynamics.

In 2023 alone, Apple’s stock has surged by an impressive 46 per cent, while chipmaker Nvidia has experienced a staggering 185 per cent increase, solidifying its status as the first trillion-dollar chip company.

Other tech giants, including Tesla and Meta Platforms, have more than doubled in value this year, with Microsoft posting a respectable 40 per cent gain.

Apple’s progress toward the $3 trillion milestone aligns with its recent launch of an expensive augmented-reality headset on June 5.

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This move represents the company’s riskiest venture since the introduction of the iconic iPhone over a decade ago.

Consistent track record

Despite a recent quarterly report showing a decline in revenue and profits, Apple managed to exceed analysts’ expectations, reinforcing its reputation as a safe investment amidst global economic uncertainties. The company’s consistent track record of stock buybacks has further solidified investor confidence.

Recent stock gains have outpaced analysts’ estimates for Apple’s future earnings, with the stock now trading at approximately 29 times expected earnings. This multiple represents Apple’s highest since February 2022, as reported by Refinitiv data.