Apple Adopts AI, Regains Intraday Market Cap Lead... Neck and Neck with MS

Apple, leveraging generative artificial intelligence (AI) capabilities, briefly surpassed Microsoft (MS) during trading hours to reclaim the top spot in market capitalization. However, by the close of trading, MS regained the lead, highlighting a tight competition for the title of 'the world's most valuable company.' On Wall Street, MS is also being recognized as a beneficiary of Apple's AI adoption.

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On the 12th (local time) in the New York stock market, Apple's stock closed at $213.07 per share, up 2.86% from the previous session. Since the day after the annual Worldwide Developers Conference (WWDC), where Apple unveiled its AI roadmap, the stock has set record highs for two consecutive trading days. During the day, Apple's stock surged more than 6%, overtaking MS to record the number one market cap. This marks the first time in about five months that Apple has surpassed MS in market capitalization.

However, as the market closed, Apple gave back some of its gains, and MS maintained the top market cap position based on the closing price. MS's stock closed at $441.06 per share, up 1.94% from the previous session. Its market capitalization stood at approximately $3.278 trillion. Apple's market cap was slightly lower, recording around $3.267 trillion.

The third largest market cap was held by Nvidia, following MS and Apple. AI leader Nvidia's stock rose 3.55% on the third day after its stock split, regaining the $3 trillion market cap level ($3.085 trillion).

The reason Apple, which had once fallen to third place behind Nvidia, is again vying for the top spot is largely attributed to expectations of increased iPhone sales driven by AI adoption. Apple, which had been considered relatively behind other big tech companies in the AI race, announced its own AI systems, 'Apple Intelligence,' and a partnership with OpenAI, the developer of ChatGPT, at WWDC on the 10th.

Although initial reactions were mixed, with some saying the announcements fell short of expectations, Wall Street analysts have poured in with analyses suggesting that this AI integration will translate into device sales, including new iPhones launching in the second half of this year, fueling a rally in Apple's stock. Bank of America (BoA) noted in an investor memo that "Apple Intelligence could drive a significant upgrade cycle," predicting that "AI features will lead to faster replacements, more conversions, and an increase in average selling prices." Wedbush Securities commented, "All questions about Apple lagging in AI technology have been answered," adding that "there is clearly demand in the device replacement cycle."

In particular, the economic media outlet CNBC forecasted that MS, which has been trading places with Apple for the number one market cap spot, could also benefit from Apple's AI adoption. MS is the largest investor in OpenAI, the partner Apple announced. MS's cloud services have shown growth thanks to OpenAI.

This content was produced with the assistance of AI translation services.