Apple is on the cusp of making history as the first company to achieve a market capitalization of over $4 trillion. As of December 27, its valuation stood at $3.92 trillion, inching closer to this extraordinary milestone. If it crosses the threshold, Apple will beat out Microsoft, currently valued at $3.26 trillion, and Nvidia, which boasts a $3.43 trillion valuation.
The Road to $4 Trillion
Apple stock (AAPL) has seen a significant 40% rise this year. This surge is largely attributed to optimism surrounding advancements in artificial intelligence (AI) embedded in the iPhone and other Apple devices. Analysts have repeatedly pointed to AI as the next big growth engine for the Cupertino-based tech giant.
Wedbush analyst Daniel Ives, a long-time Apple bull, underscored this in his December 26 research note titled “iPhone 16 Cycle is Just the Beginning of a New Era for Cupertino.”
“We are raising our price target on Apple to $325 (from $300) as a golden era of growth for Cupertino is now on the horizon into 2025,” Ives stated, as reported by Fortune.
AI-Driven Growth and Apple Intelligence
Ives elaborated on Apple’s emerging AI strategy, which he believes is being underestimated by Wall Street.
“Rome wasn’t built in a day and neither will Apple’s AI strategy, but the seeds of that strategy with Apple Intelligence are now forming and will transform the Apple consumer growth narrative over the coming years,” he wrote.
Ives estimated that Apple Intelligence, with hundreds of apps reportedly in development, could create a multi-billion-dollar annual revenue stream through its Services division. This, combined with a multi-year iPhone upgrade cycle, is expected to catalyze further growth in the next 12 to 18 months.
“We believe Apple is on pace to reach the $4 trillion market cap threshold and be the first member of this exclusive club,” he concluded.
JPMorgan’s Take on Apple’s Future
JPMorgan analyst Samik Chatterjee also shared a bullish outlook for Apple, highlighting the potential of the iPhone 17 and other growth drivers.
“We see upside in … the transformation of the company to Services, growth in the installed base, technology leadership, and optionality around capital deployment,” Chatterjee noted in a recent client report.
What This Means for Investors
The buzz around Apple’s AI advancements and new revenue opportunities positions the company as a leader in tech innovation. Its consistent focus on expanding its ecosystem—whether through hardware, services, or AI—underscores its ability to adapt and thrive.
The Takeaway
As Apple edges closer to a $4 trillion valuation, the company’s strategic investments in AI and product innovation are reshaping its growth narrative. For investors, the potential for continued stock appreciation makes Apple a compelling story in the tech world.
Stay tuned as Apple’s journey unfolds—it’s history in the making.