Apple’s market capitalization surpasses $5T for the first time — Freedom Broker analysts’ view

On Tuesday, Apple (AAPL) shares rose to an all-time high of $342.89, pushing the company’s market capitalization briefly above $5T for the first time. By the close, the stock pulled back to $340, 08, and the market value totaled about $4.98T. However, Apple retained its status as the world’s most valuable public company, staying ahead of Nvidia (NVDA). Freedom Broker analysts believe the brief move to a market capitalization of $5T became an important psychological milestone and reflects a shift in investor preferences within the technology sector.

Why Apple is rising

Apple Inc. is one of the world’s largest manufacturers of consumer electronics and digital services, developing an ecosystem of devices and software products that includes the iPhone, Mac, iPad, Apple Watch, and the App Store, iCloud, and Apple Music services.

According to Freedom Broker analysts, the symbolic crossing of the $5T mark reflects a shift in investment priorities in the technology sector. Whereas investors previously favored companies aggressively ramping up spending on artificial intelligence, the market is now increasingly betting on businesses with resilient profitability, strong cash flow, and more disciplined capital allocation.

At the same time, further consolidation of market capitalization above $5T, Freedom Broker believes, will depend on the upcoming quarterly report and Apple’s ability to accelerate the development of its own AI features without losing technological independence.

A new sales format supports demand

On Tuesday, Apple officially introduced the Apple Upgrade program, which will allow U.S. buyers to lease devices instead of purchasing them. In partnership with Klarna, users will be able to rent an iPhone for up to two years starting at $17.99 per month. A similar program applies to the Apple Watch, iPad, and Mac. The new service is intended to reduce the impact of higher device prices and shift attention from the one-time price to the monthly payment.

The market expects strong quarterly results

Apple’s financial results for the third quarter will be published after the close of trading on July 30. The upcoming report will also be Tim Cook’s last as the company’s CEO before handing over authority to John Ternus, who will officially lead Apple starting September 1.

Competition with Nvidia by market cap

Earlier, Apple raised starting prices for certain Mac and iPad models due to higher memory costs, and analysts also allow for a similar step with new iPhones. 

In addition, in July Apple once again overtook Nvidia by market capitalization, regaining its status as the world’s most valuable public company. The company is also exploring PrismML startup technology that allows large artificial intelligence models to run directly on the iPhone without using cloud infrastructure.

This is not an individual investment recommendation.