Rosa Pedraza
Jun 13, 2024 - 02:05

Apple reclaims title as largest company, racing Microsoft and Nvidia to $4 trillion valuation

Tech giants Apple, Microsoft, and Nvidia are racing to a $4 trillion valuation driven by AI technologies, predicts Wedbush analyst Dan Ives.

Wedbush analyst Dan Ives has made a bold prediction that three tech giants will be racing to reach a $4 trillion valuation within the next year. Apple, Microsoft, and Nvidia are at the forefront of this race, with Apple recently reclaiming its position as the world's largest company by market cap.

Apple's stock surged by more than 4% in Wednesday trades, pushing its market valuation to an impressive $3.31 trillion. Microsoft and Nvidia also saw gains, with Microsoft reaching a valuation of $3.26 trillion and Nvidia hitting nearly $3.1 trillion.

The AI boom has played a significant role in driving up the stock prices of these mega-cap tech companies, with Apple recently unveiling its "Apple Intelligence" at the WWDC event. This move has propelled Apple's shares up by 12% since the announcement.

Dan Ives believes that the continued adoption of AI technologies will propel these companies to reach a $4 trillion valuation milestone. He likened the AI Revolution to a party that is just getting started, with Nvidia leading the charge.

Apple, in particular, has a significant opportunity in the AI space, with a massive installed base of smartphones that can be leveraged for new AI product features. Ives predicts that this will spark a super cycle for Apple, driving further growth in the company.

Furthermore, Apple's release of AI software at WWDC will enable developers to create a new AI App Store, offering consumers a wide range of AI-focused apps. This, in turn, could lead to a bundled subscription service for Apple, focusing on higher-end AI capabilities.

While Apple seems to be leading the charge in the AI race, Microsoft and Nvidia are not far behind. Ives sees these companies as the first derivatives of the AI Revolution, with the potential to also reach the $4 trillion valuation mark in the near future.