Apple briefly reaches $5 trillion market capitalization as strong product demand and strategic AI spending offset tech sell-off.
Apple briefly became the second publicly traded company in history to reach a market capitalization of $5 trillion on Tuesday. The tech giant's share price hit a session high of $342.89, driven by robust demand for its flagship products and a strategic decision to limit capital expenditures on artificial intelligence compared to its major rivals. While competitors like Nvidia and Microsoft face scrutiny over heavy debt and cash flow concerns related to aggressive AI spending, Apple has benefited from using Google's technology to power its services, sparing it from high infrastructure costs. To maintain demand, Apple recently launched a new leasing program in the U.S. to make products more accessible. The company also recently raised prices on MacBooks and iPads to account for global memory shortages. This rally comes ahead of the third-quarter earnings report on Thursday, which will serve as the final earnings call for CEO Tim Cook before he hands over leadership to John Ternus on September 1.