Apple hits record $5.08 trillion value as investors flee AI hardware
The short version
- Its market value climbed to $5.08 trillion, overtaking Nvidia, the computer chip maker, as the world's most valuable company.
- Check your retirement accounts and index funds today.
Apple, the consumer technology giant, reached a record $354.50 per share on November 4, pushing its market value to $5.08 trillion. That milestone made it the world's most valuable company again, overtaking Nvidia, the computer chip maker, at $4.83 trillion. The surge came as investors rotated out of heavy AI hardware and into Apple due to its lighter AI spending.
According to Yahoo Finance, the broader stock market suffered a sharp decline on Thursday, with the Nasdaq falling 5.52% and the S&P 500 losing 4.36%. The Magnificent Seven tech stocks lost close to $900 billion in value heading into the final hour.
Nvidia alone shed about $374 billion, while Apple shed nearly $59 billion in the pullback. The shift away from server-heavy hardware also helped ease pressure on memory chip prices, which have been Apple's main cost headwind this year. Falling oil prices and Treasury yields added further support to the broader market shift.
Despite Thursday's 1.5% slip, Apple's stock remains up about 26% year to date. The initial rally followed Apple's fiscal fourth-quarter report, where revenue rose 12% year-over-year to $114.5 billion. Earnings per share hit $2.10, beating the $1.99 consensus estimated by analysts.
However, executives cautioned that December-quarter gross margins would dip due to rising memory costs. For anyone holding major index funds or retirement accounts, broad tech sector swings directly impact your overall portfolio balance.
