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Apple Inc. briefly reclaimed the title of the world’s most valuable company on Wednesday, fueled by investor excitement over its ambitious artificial intelligence (AI) plans unveiled at its developers conference. The tech giant’s market capitalization soared to $3.3 trillion around 10:45 a.m. ET, edging out Microsoft’s $3.2 trillion. However, Microsoft regained its lead by the market close.
Investor enthusiasm surged following Apple’s announcement of its comprehensive AI strategy, integrated across its family of devices. This excitement drove Apple shares up by more than 7% to a record high on Tuesday, with an additional 2.8% rise on Wednesday.
Apple’s AI initiative, branded as Apple Intelligence, will feature generative AI technology embedded in native apps and new devices. Key features include advanced writing assistance and AI-generated emojis, sparking predictions of an iPhone super cycle.
Leading analysts from Morgan Stanley, Evercore, and Bank of America have expressed strong confidence in Apple’s AI-driven future. Evercore analysts noted that restricting Apple Intelligence to the latest iPhones enhances the likelihood of a significant boost in iPhone sales. “This adds to our conviction that AI can help kick off an iPhone super cycle,” they wrote in a note to investors.
The competition for the top spot among tech giants is intensifying. Microsoft, which had previously surpassed Apple’s market cap earlier this year, briefly lost its lead. Nvidia also recently overtook Apple, momentarily becoming the second-most valuable public company in the U.S.
Apple’s AI ambitions also have positive implications for Microsoft. Apple’s plan to integrate OpenAI’s large-language models as a feature for users will benefit Microsoft, a significant investor in OpenAI. Microsoft’s Azure cloud services have experienced growth thanks to the widespread adoption of OpenAI’s models.
