On June 10, 2024, Apple CEO Tim Cook attended the annual developers conference event at the company’s headquarters in Cupertino, California. During the event, Apple announced its push into artificial intelligence (AI), which resulted in the company surpassing Microsoft to become the most valuable company in the world.
Apple’s strategy to incorporate generative AI technology into its native apps and latest devices was well-received by analysts and investors. Analysts from Morgan Stanley, Evercore, and Bank of America believe that Apple Intelligence will drive users to purchase new iPhones, potentially leading to an iPhone super cycle. With a market cap of $3.3 trillion, Apple’s value exceeded Microsoft’s market cap of $3.2 trillion after investors reacted positively to the news of the company’s AI initiatives.
Despite this recent success, there is a constant battle for the top spot in market cap rankings. Nvidia briefly became the second-most valuable public U.S. company earlier this month, but Microsoft had previously surpassed Apple earlier in the year. Both companies are expected to benefit from Apple’s new AI features as Apple announced plans to include OpenAI’s large-language models for its users. Microsoft, a key investor in OpenAI, has seen growth in its Azure cloud services due to the popularity of OpenAI’s models.
Investors were impressed by Apple’s commitment to incorporating AI into its products and services, which led to a surge in shares over 7% on Tuesday and continued to rise by about 4% on Wednesday
