Apple Inc. reached a $4 trillion market capitalization for the first time on Tuesday, becoming the third Big Tech company to achieve the milestone. The surge was driven by strong global demand for its latest iPhone models, easing investor concerns over Apple’s slower progress in the artificial intelligence (AI) space.
Apple’s stock has climbed 13% since the launch of the iPhone 17 lineup and iPhone Air on September 9, marking a sharp rebound and pushing the shares into positive territory for 2025.
“The iPhone accounts for over half of Apple’s profit and revenue. The more devices they sell, the deeper users get into the Apple ecosystem,” said Chris Zaccarelli, Chief Investment Officer at Northlight Asset Management.
Earlier in the year, Apple’s shares had come under pressure due to stiff competition in China and uncertainties surrounding U.S. tariffs on Asian manufacturing hubs such as China and India. However, the success of the new iPhones — especially in Beijing and Moscow — helped the company regain investor confidence.
Strong iPhone Sales Drive Momentum
Data from Counterpoint Research showed that iPhone 17 sales outperformed the iPhone 16 series by 14% in both the U.S. and China. Analysts also credited the slim, lightweight iPhone Air for helping Apple defend market share against Samsung Electronics and other Android rivals.
Brokerage firm Evercore ISI said the strong performance could help Apple beat market expectations for the September quarter and post bullish guidance for the December quarter.
Apple Trails in AI Race
Despite its valuation milestone, Apple continues to face criticism for its cautious approach to AI. Reports indicate that several senior AI executives have left the company for Meta, even as Apple explores partnerships with OpenAI, Anthropic, and Alphabet’s Gemini to strengthen its AI portfolio.
The rollout of Apple Intelligence, which includes ChatGPT integration and a Siri AI upgrade, has been delayed until next year, adding to investor unease.
“The lack of a clear AI strategy remains an overhang for Apple’s stock,” Zaccarelli noted. “If Apple can find a way to make AI an exciting part of its ecosystem, the company’s growth story could shift dramatically.”
Financial Performance and Valuation
Apple reported double-digit growth across key segments in the April–June quarter, with results beating analyst expectations. The company will announce its fourth-quarter earnings on October 30.
At present, Apple’s shares trade at 33.2 times projected 12-month earnings, higher than the Nasdaq 100’s 27.42 multiple, according to LSEG data. Despite the recent rally, Apple’s 7% gain in 2025 still lags the Nasdaq’s 22% rise.
Apple now joins Nvidia and Microsoft in the exclusive $4 trillion market cap club, with Nvidia leading at over $4.5 trillion.
