Apple Inc.’s stock witnessed a monumental surge on Tuesday, igniting a frenzy in the financial markets and adding approximately $215 billion to the company’s market capitalization. This surge propelled Apple closer to reclaiming its coveted position as the largest U.S. company, marking a significant milestone in its journey.
During Tuesday’s trading session, Apple’s shares skyrocketed by an impressive 7.3%, marking their most substantial single-day percentage gain since 2022. This surge also marked only the third instance of such a remarkable uptick over the past three years, highlighting the extraordinary nature of the event. Apple emerged as the unequivocal leader in both the S&P 500 and the Dow Jones Industrial Average, contributing nearly 92 points to the Dow’s overall performance. This marked a rare feat for Apple, as its shares haven’t claimed the title of the biggest daily winner in the S&P 500 since November 30, 2021, according to data from Dow Jones Market Data.
The surge in Apple’s stock price resulted in its largest one-day market capitalization increase on record, positioning it as the third-largest gain in market capitalization for any U.S. company in history, according to Dow Jones Market Data. This historic achievement underscored the enduring strength and appeal of Apple as an investment powerhouse. With this surge, Apple significantly widened the market capitalization gap between itself and Nvidia Corp., a prominent player in the tech industry. Simultaneously, Apple closed in on Microsoft Corp., the reigning leader in market value among U.S. companies. Microsoft itself reached a new record market capitalization of $3.22 trillion during Tuesday’s trading session.
At the close of trading, the difference in market capitalization between Apple and Microsoft narrowed to $39.4 billion, marking the closest margin since January 26. This narrowing gap signaled Apple’s relentless pursuit of the top spot in the U.S. corporate landscape. Apple hasn’t surpassed Microsoft in market value since January 24, making the recent surge all the more noteworthy.
With a market value soaring to approximately $3.18 trillion, Apple achieved a new record market capitalization for the first time since July 2023, surpassing its previous high of $3.09 trillion. The company’s market capitalization surged by an astonishing $628 billion from its 2024 low reached in mid-April, exceeding the individual market capitalizations of all but eight companies in the U.S., excluding Apple itself.
Furthermore, Apple’s stock concluded the day at a record high of $207.15, marking its first record finish since December 14, 2023. This impressive feat underscored the enduring appeal and investor confidence in Apple’s growth prospects.
Analysts expressed overwhelming optimism about Apple’s future prospects following its announcements and strategic initiatives, particularly regarding the new Apple Intelligence AI features unveiled during the Worldwide Developers Conference. Melius Research analyst Ben Reitzes emphasized the potential for significant iPhone revenue growth, reinforcing the thesis of a potential Super Cycle that could drive substantial growth for up to two years. This bullish sentiment further fueled investor enthusiasm and confidence in Apple’s trajectory.