Apple has overtaken Microsoft as the most valuable company by market capitalization, and two popular words on Wall Street have helped drive its success: artificial intelligence.
According to Dow Jones Market Data, Apple's current market capitalization is $3.256 trillion, while Microsoft's is $3.249 trillion.
Apple's story began at its Worldwide Developers Conference on Monday, where the company unveiled its AI strategy.
It appears investors took a while to open up to the news, given that shares fell 1.9% on Monday and then rose 7.3% on Tuesday to an all-time high of $207.15, their highest price since December 2023. On Wednesday, shares were up 3.3%.
Analysts at Wedbush Securities, led by Dan Ives, flocked to the market's delayed positive reaction to Apple shares.
“The intelligence news is that investors are beginning to fully understand that the AI ​​revolution will be brought to consumers via Apple devices within the next 12 months,” he wrote.
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Mizuho Securities analyst Daniel O'Regan provided more detailed reactions from major Wall Street groups.
“Customers were positive, but I was surprised at how much the stock price rose,” he wrote. “Apple delivered what people expected,” he continued. “While not groundbreaking, Apple intelligence is a step in the right direction.”
“At worst, sentiment improves, but at best, it could be a breakthrough and lead to a bigger-than-expected refresh cycle,” the analyst added.
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But sellers were highly optimistic, arguing that the new features would spur a massive refresh cycle this year, especially since fewer than 10 percent of iPhones are capable of running the latest features.
To be sure, there's no guarantee that consumers, especially those with less financial means, will shell out hundreds of dollars for an upgrade, but the optimism in the stock this week suggests they're likely to do so.
Email Emily Dattilo at emily.dattilo@dowjones.com.
