Apple becomes the second company in history to reach a $5 trillion market capitalization
Apple has achieved a historic milestone by becoming only the second publicly traded company to reach a $5 trillion market capitalization. The tech giant's valuation reached $5.04 trillion on Tuesday, briefly overtaking Nvidia to become the world's most valuable company. This rally is attributed to strong demand for its flagship products, particularly the iPhone, and a strategic decision to avoid the heavy infrastructure costs associated with the AI spending race that has pressured rivals like Microsoft and Google. By leveraging Google's technology to power its services, Apple has been shielded from the steep sell-offs affecting AI-focused stocks. While competitors have faced concerns over circular funding and high capital expenditures, Apple's stock has outperformed the other members of the "Magnificent Seven" cohort this year. The company is preparing for a major leadership transition as CEO Tim Cook prepares to hand over the reins to incoming CEO John Ternus on September 1. Apple is scheduled to report its third-quarter earnings on Thursday.